KUALA LUMPUR: The High Court today ordered a senior lawyer to pay the Securities Commission (SC) close to RM3 million as penalty for insider trading.
The SC said Sreesanthan Eliathamby was to pay them a total of RM2,989,402 based on the ruling by the court.
“RM1,989,402 from the total is equal to three times the profits gained by Sreesanthan as a result of his illegal activities,” SC said in a statement.
Judge Azizul Azmi Adnan ordered Sreesanthan, 60, to pay the additional RM1 million to the SC as a civil penalty.
He also barred Sreesanthan from being a director of any public-listed company for a 10-year period starting Nov 18.
The SC was also awarded costs of RM100,000.
Azmi said he found the SC had successfully proven its claim in a civil suit against Sreesanthan for breaching Section 89E(2)(a) of the Securities Industry Act 1983 when he acquired 600,000 shares of Worldwide Holdings Berhad (Worldwide) in 2006 while in possession of material non-public information.
That classified information is related to a proposed privatisation of Worldwide undertaken by Perbadanan Kemajuan Negeri Selangor (PKNS) by way of a member’s scheme of arrangement.
The proposed privatisation of Worldwide was subsequently announced to Bursa Malaysia on Aug 23, 2006.
Sreesanthan, who was a senior partner in a law firm, had acted as a legal adviser for the proposed privatisation of Worldwide. - FMT
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