SC wins insider trading case against former CEO
KUCHING: The High Court ruled that the Securities Commission Malaysia (SC) had successfully proven its claim in an insider trading civil suit filed in 2021 against Datuk Aminuddin Md Desa, former chief executive officer of Perbadanan Kemajuan Negeri Perak (PKNP) and Perak Corporation Bhd (PCB).
According to a press statement, High Court Judge Wan Muhammad Amin Wan Yahya ordered Datuk Aminuddin to pay the SC RM2.46 million, which is three times the profits gained as a result of the insider trading breach.
Aminuddin is also required to pay to the SC a civil penalty of RM1 million and costs of RM100,000.
Aminuddin had breached section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) by acquiring 1.413 million PCB shares between October 2013 and January 2014 while in possession of inside information. The inside information was on PKNP’s proposed privatisation of PCB.
In addition to the above, the High Court ordered Aminuddin to be barred from being appointed as a CEO or director or being involved in the management of a public listed company (PLC) and/or a subsidiary of a PLC, for five years beginning from the court judgment on February 13, 2024.
He was also barred from trading in any securities on Bursa Malaysia for five years beginning from the court judgment on February 13, 2024.
Insider trading is a serious misconduct in the capital market. The continuous enforcement by the SC demonstrates its commitment to address misconduct that abuses the integrity of the capital markets.