KUALA LUMPUR: The Securities Commission has charged the chairman of Three-A Resources Bhd (3A) Datuk Mohd Nor Abdul Wahid with insider trading under Section 188(2)(a) of the Capital Markets & Services Act 2007 (CMSA).
Mohd Nor, 66, was charged acquiring 500,000 units of 3A shares on Oct 5, 2009 while in possesion of material non-public information.
The SC alleged that the inside information related to the proposed collective venture between the businesses of 3A and Wilmar.
Mohd Nor was 3A’s executive chairman at that time. He is currently an independent non-executive chairman of the company.
Mohd Nor is alleged to have acquired the 3A shares through the account of Azuzay Zamani.
Azuzay, 43, was charged for allowing Mohd Nor to use his account for the trade, an offence under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).
Both claimed trial to the respective charge preferred against them.
Mohd Nor and Azuzay were granted bail of RM50,000 with one surety respectively. They were also ordered to surrender their passports.
The offence of insider trading under section 188(2)(a) of the CMSA is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1mil.
The offence under section 29A of the SICDA is punishable with a fine not exceeding RM1mil and an imprisonment term not exceeding five years.