Tuesday, 12 August 2014

Bursa Malaysia reprimands, strikes off TA Securities dealer


PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded, imposed a fine of RM360,000 and ordered to strike off Oh Kok Boon, a dealer, for manupulating dealing activities in six counters.
He was found to have made manipulative dealings in Biosis Group Bhd, Metronic Global Bhd, Ariantec Global Bhd, Luster Industries Bhd, Harvest Court Industries Bhd and Naim Indah Corp Bhd.
Oh was a commissioned dealer's representative at TA Securities Holdings Bhd main office at the time of breach.
He was found engaged in numerous manipulative or false dealing activities over a period of time in the accounts of several clients involving clients who were his family members as well.
Oh was said to have bought Harvest Court and Naim Indah shares on or before the due date for settlement by passing on these to other clients via married direct business transactions (DBT), which were executed at prices higher than the prevailing market price.
"These married DBTs were used as a tool/device that provided savings/avoided losses to the selling clients in the down trending market of these securities," Bursa said.
By doing so, Oh and his clients were able to prolong the holding period of the shares and also drive up the stock prices which contributed towards artificial inflated or increased volume for the counters.
Bursa said the on-market trading activities undertaken by Oh over a period of several months in the six counters with the execution of opposing buy or sell orders for a group of his clients resulted in their opposing orders being matched against each other.
These cross trades between Oh's clients at the dictated increased or decreased share prices had impacted or influenced the price movement or trading volume of the six counters, Bursa said.
The manipulative trading activities by Oh had the effect of creating a false or misleading appearance of active trading in the securities of the six counters as the trades were not due to natural market forces of supply and demand.
Bursa said it was not acceptable for Oh as a registered person to merely execute orders as instructed by his clients without making proper assessment of the orders and exercising reasonable due care and diligence in undertaking dealing activities so as to avoid manipulative or false dealing activities.

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