- FRESH from filing its landmark legal suit, the Securities Commission (SC) is probing share trades of more companies for possible price manipulation activities, it was learnt yesterday.
Business Times was told that the regulator is monitoring the situation before deciding if there are enough grounds to justify a full-fledged investigation.
In an e-mail reply to questions sent, the SC said it proactively monitors trading activities on Bursa Malaysia to ensure a fair and orderly market, and that "firm action will be taken where there is evidence of wrongdoing".
Apart from firms linked to Global Trader Europe Ltd, a UK fund, it is believed that the regulator has widened its scope to include Liqua Health Corp Bhd and Welli Multi Corp Bhd.
The Global Trader probe is on possible insider trading. In late February, several counters had brutal limit-down crashes, timed with the UK fund's selling of pledged shares, with margin shortfall.
The latest probe, meanwhile, is on possible manipulation in the trading of Liqua Health and Welli Multi shares. Sources said a senior dealer was interviewed last week on trading related to shares of Liqua Health.
Both companies, with possible accounting irregularities rap hanging over their heads, closed at their lowest level on March 19.
However, some 10 trading days later, shares of Welli Multi and Liqua Health surged by some 400 per cent and 200 per cent respectively.
Liqua Health, which was also linked to the Global Trader probe, announced on Wednesday the appointment of chartered accountants Baker Tilly Monteiro Heong to do a forensic audit on transactions worth RM15 million.
Welli Multi has had a roller-coaster 12 months, with a slew of expired memoranda of understanding on changes in ownership and expansions into China and Indonesia under its belt.
On April 1, it signed a conditional subscription agreement with GEM Global Yield Fund Ltd and GEM Investment Advisors Inc, for the two US-based funds to buy under five per cent of the company for about 50 sen a share.
On further prodding from the stock exchange, Welli Multi said it doesn't know who is behind the fund or its intentions.
Now I do understand that perhaps SC could have done much more than dishing out civil suits. Postings and the comments made on Dali's blog is certainly worth reading SC files landmark civil suit and Cat Out Of The Bag
Could SC done much better? Probably.
Are you happy to see what's happening?
Don't you think that SC by taking these actions indicates that perhaps finally we might see some changes in the local market for good? At least there is hope for a better future, yes? Or is this simply wishful thinking?
Or are you afraid that these actions would ultimately hurt the already fragile market sentiments? Some would argue by saying 'Aiyoh, Malaysian markets needs these buggers around mah and without them, how to cari makan?'
How?
I think it's a step in the right direction.. although I am reserving my further judgement until the whole thing pans through..
ReplyDeleteI think the whole "we need this for the mkt thing" is just a load of BS.. naturally people only think of themselves..