Securities Commission wins lawsuit against PKNP CEO in insider trading case


KUALA LUMPUR: The High Court here on Tuesday (Feb 13) ordered former Chief Executive Officer (CEO) of Perbadanan Kemajuan Negeri Perak (PKNP) and Perak Corporation Bhd (PCB) Datuk Aminuddin Md Desa to pay RM3.56mil to the Securities Commission Malaysia (SC) for offences under the Capital Markets and Services Act 2007 (CMSA).

SC, in a statement on Tuesday, said Judge Wan Muhammad Amin Wan Yahya found that SC had successfully proven its lawsuit against Aminuddin, which was filed in 2021.

According to SC, the judge ordered Aminuddin to pay SC RM2.46mil, three times the profit obtained from insider trading violations. Aminuddin was also required to pay SC a civil penalty of RM1mil and costs of RM100,000.

"The Court also prohibits Aminuddin from being appointed as a chief executive officer or director or being involved in the management of a publicly listed company (PLC) and PLC subsidiaries for a period of five years from the date of the court's decision.

"He is also prohibited from engaging in any trading activities in any securities listed on Bursa Malaysia for five years from the date of the court's judgment," SC said in its statement.

Aminuddin was charged with violating Section 188(2)(a) of the CMSA by acquiring 1,412,700 shares of PCB between October 2013 and January 2014 while in possession of insider information.

According to the SC, the insider information pertained to the proposal for the privatisation of PCB by PKNP.

SC added that insider trading is a serious misconduct in the capital market, and SC is committed to addressing misconduct in abusing the integrity of the capital market. – Bernama

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SC , Insider Trading , Aminuddin Md Desa , Lawsuit , Win

   

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