News
MSWG COMMENTS ON INSIDER TRADING CASE OF PADIBERAS NASIONAL BHD (BERNAS) SHARES - A LESSON TO BE LEARNT
25 August 2006
MSWG welcomes the Securities Commission (SC)’s civil enforcement programme which has enabled 41 other investors to claim their entitlement under the compensation scheme by which the 275 investors were earlier compensated.
Please refer to SC’s press release on 90% aggrieved Bernas investors compensated on 24 August 2006.
Besides a significant milestone for the SC, their civil enforcement programme has also made it easier for aggrieved investors to take legal action and to recover their losses. Previously, the laws stated that such action by aggrieved parties against insider trading could only be taken through the court which would need to be proven, costly and time consuming..
The SC’s civil enforcement programme has cast the net wider without fear or favour in search of the culprits or guilty ones and punish them appropriately. Effectively, the civil enforcement programme has extended the scope of the law to deal with insider trading offences and to remove abuses on what constitutes improper conduct or abuses of insider information. Insider trading is not only unfair to genuine investors but it also undermines investor confidence for fair dealing.
MSWG is of the opinion that the more astute the recourse to civil enforcement processes the more effective it will be to expedite the prosecution and conviction of insider traders. The civil enforcement programme will make the SC more effective and useful to track down errant directors and CEOs who have indulged in insider trading.
In line with the saying “Do what you preach,” MSWG endorses that the SC has kept truthful to its words from the time when the Securities Commission Act 1993 and the Securities Industry Act 1983 have been broadened significantly to empower them to disqualify and remove errant directors and CEOs from office since January 2004.
The advice of MSWG to be cautious and accountable is:
Do not trade while in possession of confidential price sensitive information unless you disclose the information to the public
Do not trade if confidentiality of the information does not allow disclosure.
When in doubt, always disclose.
Abdul Wahab Jaafar Sidek
Chief Executive Officer
Minority Shareholder Watchdog Group (MSWG)
Dated: 25 August 2006
25 August 2006
MSWG welcomes the Securities Commission (SC)’s civil enforcement programme which has enabled 41 other investors to claim their entitlement under the compensation scheme by which the 275 investors were earlier compensated.
Please refer to SC’s press release on 90% aggrieved Bernas investors compensated on 24 August 2006.
Besides a significant milestone for the SC, their civil enforcement programme has also made it easier for aggrieved investors to take legal action and to recover their losses. Previously, the laws stated that such action by aggrieved parties against insider trading could only be taken through the court which would need to be proven, costly and time consuming..
The SC’s civil enforcement programme has cast the net wider without fear or favour in search of the culprits or guilty ones and punish them appropriately. Effectively, the civil enforcement programme has extended the scope of the law to deal with insider trading offences and to remove abuses on what constitutes improper conduct or abuses of insider information. Insider trading is not only unfair to genuine investors but it also undermines investor confidence for fair dealing.
MSWG is of the opinion that the more astute the recourse to civil enforcement processes the more effective it will be to expedite the prosecution and conviction of insider traders. The civil enforcement programme will make the SC more effective and useful to track down errant directors and CEOs who have indulged in insider trading.
In line with the saying “Do what you preach,” MSWG endorses that the SC has kept truthful to its words from the time when the Securities Commission Act 1993 and the Securities Industry Act 1983 have been broadened significantly to empower them to disqualify and remove errant directors and CEOs from office since January 2004.
The advice of MSWG to be cautious and accountable is:
Do not trade while in possession of confidential price sensitive information unless you disclose the information to the public
Do not trade if confidentiality of the information does not allow disclosure.
When in doubt, always disclose.
Abdul Wahab Jaafar Sidek
Chief Executive Officer
Minority Shareholder Watchdog Group (MSWG)
Dated: 25 August 2006
