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MAS takes action against director for insider trading
Thu, Jan 08, 2009
AsiaOne
The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Mr Chu Chwee Tiak for insider trading under Section 219(2)(a) of the Securities and Futures Act (SFA).
On July 25, 2006, See Hup Seng Limited (SHS), a company listed on the Singapore Exchange Securities Trading Ltd (SGX-ST), announced that it had entered into an agreement to acquire Speedo Corrosion Control Pte Ltd for a total consideration of S$3.5 million from C T Holdings Pte Ltd (CTH).
Mr Chu, a director and shareholder of CTH, purchased one million shares of SHS on July 21, 2006 while he was in possession of non-public price sensitive information concerning the impending agreement between SHS and CTH.
As a result, he gained $10,000.
He has since admitted to civil penalty liability for contravening Section 219(2)(a) of the SFA and has paid a civil penalty of S$50,000 to MAS without court action.
Section 219(2)(a) prohibits a person who is in possession of material price sensitive information concerning any securities, which he knows is material price sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities.
According to a press statement from the MAS, Mr Chu has cooperated fully during the course of MAS' investigation.
Thu, Jan 08, 2009
AsiaOne
The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Mr Chu Chwee Tiak for insider trading under Section 219(2)(a) of the Securities and Futures Act (SFA).
On July 25, 2006, See Hup Seng Limited (SHS), a company listed on the Singapore Exchange Securities Trading Ltd (SGX-ST), announced that it had entered into an agreement to acquire Speedo Corrosion Control Pte Ltd for a total consideration of S$3.5 million from C T Holdings Pte Ltd (CTH).
Mr Chu, a director and shareholder of CTH, purchased one million shares of SHS on July 21, 2006 while he was in possession of non-public price sensitive information concerning the impending agreement between SHS and CTH.
As a result, he gained $10,000.
He has since admitted to civil penalty liability for contravening Section 219(2)(a) of the SFA and has paid a civil penalty of S$50,000 to MAS without court action.
Section 219(2)(a) prohibits a person who is in possession of material price sensitive information concerning any securities, which he knows is material price sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities.
According to a press statement from the MAS, Mr Chu has cooperated fully during the course of MAS' investigation.
