KUALA LUMPUR, Oct 10 -- The Securities Commission Malaysia (SC) today charged Cheah Yew Keat, former managing director (MD) of DIS Technology Holdings Bhd, with five counts of insider trading in the company’s shares.
All five charges were for insider trading offences under section 188(2)(a) of the Capital Markets and Services Act 2007, it said in a statement here.
Cheah was alleged to have disposed of 2,884,300 units of DIS Technology shares via the accounts belonging to one Chuah Ni whilst in possession of non-public information between March 1, 2010 and March 4, 2010, said SC.
The non-public information referred to in all charges related to the alleged misstatement of DIS Technology’s quarterly financial reports between the third quarter of 2008 and the fourth quarter of 2009 which had a significant impact on the company’s financial results.
Insider trading is an offence punishable with imprisonment term not exceeding 10 years and a fine of not less than RM1 million. Cheah claimed trial to the charges, it said.
Sessions Court Judge Tuan Hasbullah Adam, who set bail at RM200,000 with one surety, also required Cheah to surrender his international passport to the court.