KUALA LUMPUR: The Securities Commission Malaysia (SC) has filed a civil suit against Sabah businessman Datuk Raymond Chan Boon Siew for alleged insider trading involving the shares of Naim Indah Corp Bhd (NiCorp), now known as Pegasus Heights Bhd.
In the suit filed on July 5, the SC claimed that Chan communicated inside information to one Dato' Lim Thiam Huat (Lim), in breach of section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).
The SC also contended that further or in the alternative, Chan had procured Lim to acquire NICORP shares, in breach of section 188(2)(b) of the CMSA.
"The act allegedly took place between the end of January 2012 and February 1, 2012," the regulatory agency said in a statement.
The SC said it was seeking court orders for disgorgement of the theoretical profits amounting to RM25,447,500 and civil penalty of up to RM1 million against Chan.
Additionally, the SC is seeking an order to bar Chan from becoming a chief executive or director, or from being involved in the management of any public company for a period of five years from the date of judgment.
"An order barring Chan from trading on Bursa Malaysia for the same period is also sought," it added. Ends