SC sues seven for APLI share manipulation

  • Markets
  • Wednesday, 27 Sep 2017

The Securities Commission of Malaysia building in Kuala Lumpur is a 2001 Asean Energy Award winner where it saves RM2.5mil per annum alone on electricity bills.

KUALA LUMPUR: The Securities Commission (SC) recently sued seven individuals at the Kuala Lumpur High Court for the manipulation of shares in latex glove maker APL Industries Bhd (APLI).

In a statement on Wednesday, the capital market regulator said it was seeking court orders for disgorgement and civil penalty of up to RM7mil and the banning of the defendants from the capital market.
The SC alleged that a dealer’s representative at Hwang-DBS Securities Bhd and six others who were acquainted or connected to her, had actively transacted in large volumes of APLI shares from Nov 7 to Nov 9, 2006, causing a surge in the trading volume and price of APLI.

The SC claimed that their actions had created a false or misleading appearance of active trading with respect to the market for APLI shares as well as having the effect of maintaining the price of APLI shares, which were in breach of sections 84 and 85 of the Securities Industry Act 1983 respectively. 

According to the commission, the disgorgement of all profits obtained by the defendants as a result of the manipulation, will be used to compensate affected investors. 

The SC is also claiming a civil penalty of RM1mil from each of the seven defendants and orders to bar them from being a director of a public listed company and from trading on the stock exchange for a period of five years.
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