Insider trading: Ex-shipping company boss ordered to enter defence

KUALA LUMPUR: The Sessions Court yesterday ordered a shipping company executive deputy chairman to enter his defence on three counts of insider trading, eight years ago.

Judge Azman Ahmad ruled that the prosecution had succeeded in establishing a prima facie case against R. Ramesh, 55, who was formerly with Malaysian Merchant Marine (MMM) Berhad, and set April 16 for the defence trial.

The accused is alleged to have disposed more than 10 million units of MMM shares he held in the Central Depository System account with insider knowledge of a proposal by Malaysian Ratings Corporation Berhad (MARC) to lower its credit rating on MMM’s Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS).

Ramesh is accused of committing the offences at Bursa Malaysia Securities Berhad, Exchange Square, Bukit Kewangan here on Jan 11, Feb 19 and Feb 22, 2010.

The charges are framed under Section 188 (2) (a) of the Capital Markets and Services Act 2007 which carries a maximum jail sentence of 10 years and minimum fine of RM1 million, upon conviction.

Counsel Chong Loon Meng informed the court that the defence would be calling seven witnesses.

He said the accused had opted to give sworn evidence in the witness box.

Prosecuting officer Hashley Tajudin represented the Securities Commission. - Bernama