Kenyataan Media
BURSA MALAYSIA REPRIMANDS, FINES AND SUSPENDS CHEE SIOW CHIN FOR MANIPULATIVE DEALING ACTIVITIES
Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded, imposed a fine of RM150,000 and suspended Chee Siow Chin (Chee) for 18 months as a Registered Person, including trading on or through the stock market of Bursa Malaysia as a Proprietary Day Trader (PDT) and Dealer’s Representative (DR), for engaging in irregular/manipulative dealing activities in:-
- Cocoaland Holdings Berhad (“COCOLND”) shares;
- Kumpulan Jetson Bhd – warrant (“JETSON-WA”); and
- Karambunai Corporation Berhad (“KBUNAI”) shares.
Chee, who was at the material time of the breach a holder of the Capital Markets Services Representative’s License and a DR of ECM Libra Investment Bank Bhd, triggered and breached the provisions of Rules 1302.1(1)(a)&(g), 401.1(3) and 404.3(1)(a)&(c) of the Rules of Bursa Securities read together with Paragraph 6.7(a) of Participating Organisations’ (POs) Circular No. R/R 17 of 2006.
Bursa Securities views the need to maintain a fair and orderly market as imperative and will not tolerate any acts or practices which could lead to false trading or manipulative activities. Bursa Securities prohibits such manipulative activities as they could adversely affect the integrity of the market. Bursa Securities would like to strongly emphasise that all Registered Persons must undertake securities dealing activities in strict compliance with the Rules of Bursa Securities, including engaging in fair dealing, carrying out dealing activities in a fair and orderly manner and refraining from unethical or manipulative dealing activities.
Bursa Securities will not hesitate to take the appropriate stern action against anyone who engages in such misconduct, including long periods of suspension or striking off as a Registered Person, and imposing a substantial fine commensurate with the severity of the breach.
BACKGROUND
The finding of the breach and the imposition of the sanctions on Chee were made pursuant to Rule 1301.2 of the Rules of Bursa Securities upon completion of due process and after taking into consideration all facts and circumstances, including the following:-
- In respect of Chee’s dealing activities in COCOLND shares on a particular day, Chee had entered false buy orders during the pre-opening phase which were subsequently withdrawn before the market opened for trading and these buy orders had influenced the Theoretical Opening Price (TOP) of COCOLND shares on the day concerned.
- Chee’s dealing activities in JETSON-WA and KBUNAI shares over a few trading days involved spurts of false buy or sell orders created by Chee which were subsequently withdrawn. During these spurts of trading activities, Chee had also engaged in the “layering of orders” where she placed orders or a series of buy/sell orders at various price levels which were withdrawn when her sell/buy orders were matched. Chee’s dealing activities in JETSON-WA and KBUNAI shares led to a false impression of heightened interest in the trading of the stocks concerned during the relevant periods.
The manner in which Chee had conducted the trading of the three stocks did not reflect a fair and orderly dealing and did not contribute to the maintenance of a fair and orderly market.
As a Registered Person, Chee must, in carrying out her dealing activities:-
- act in a manner consistent/in accordance with the requirement imposed on the Registered Persons, including to act in a manner which contributes to the maintenance of a fair and orderly market;
- avoid/refrain from engaging in acts/practices which might lead/led to a false or misleading appearance for the relevant securities or directly or indirectly be tantamount to manipulation of these securities;
- observe professional standards of integrity and fair dealing; and
- perform her duties as a Registered Person efficiently and fairly.
ADDENDUM
Rules 1302.1(1)(a) & (g), 401.1(3) and 404.3(1)(a)&(c) of the Rules of Bursa Securities (the Rules) and Paragraph 6.7(a) of POs’ Circular No. R/R 17 of 2006 state, amongst others, that:-
- any Participant who, in any circumstances, directly or indirectly, commits a breach of or violates any of the Rules or fails to perform his duties efficiently, honestly and fairly shall be liable and be dealt with in accordance with the provisions of the Rules relating to the same;
- DRs shall avoid any act or practice which might lead to a false or misleading appearance of active trading in any securities on the stock market of the Exchange or a false or misleading appearance with respect to the market for, or the price of, any such securities or directly or indirectly be tantamount to stock market manipulations;
- DRs shall at all times observe professional standards of integrity and fair dealing and conduct their business in a manner which contributes to the maintenance of a fair and orderly market; and
- PDTs shall at all times comply with the Rules of Bursa Securities and the directives save and except where the compliance thereof whether in part or in full is expressly mentioned in the Rules of Bursa Securities and the directives as not required/not applicable to PDTs.