Saturday, July 21, 2012

Featured: SC Charges Lawyer With Insider Trading

Posted on the SunDaily:

  • Senior corporate lawyer charged with insider trading Posted on 20 July 2012 - 07:47pm

    PETALING JAYA (July 20, 2012): The Securities Commission (SC) today charged Datuk Sreesanthan Eliathamby, a corporate lawyer who sits on the boards of several public listed companies, with seven counts of insider trading.

    Sreesanthan was charged with insider trading in the shares of four listed companies namely Sime Darby Bhd, Maxis Communications Bhd, UEM World Bhd and VADS Bhd between 2006 and 2008.

    Sreesanthan claimed trial to the charges and was granted bail of RM300,000 with one surety that he surrenders his passport to the court.

    In a statement today, the SC said the charges involved three counts of insider trading in the shares of Sime Darby in 2006, ahead of the acquisition by Synergy Drive of companies within the Sime Darby, Guthrie and Golden Hope groups.

    The two counts of insider trading in the shares of Maxis, which were preferred under the Securities Industry Act 1983, were alleged to have taken place during the privatisation of the mobile service provider in 2007.

    Two other charges were preferred for insider trading under section 188(2) of the Capital Markets and Services Act 2007 involving the shares of UEM World and VADS in 2008.

    Sreesanthan's trades in UEM World were said to have been made with his knowledge of the corporate restructuring of the UEM group, while his trades in VADS allegedly involved his knowledge relating to VADS's proposed privatisation. The offences under both Acts carry a punishment of a fine of not less than RM1 million and imprisonment of a term not exceeding 10 years.

    The SC said it has been proactively pursuing market misconduct cases and will continue to be vigilant and take whatever action necessary to protect investors and to maintain a fair and orderly capital market.