KUALA LUMPUR (June 20): Bursa Malaysia has publicly reprimanded Lay Hong Bhd and its directors for breaching regulations regarding the company's response to unusual market activity queries on Nov 2, 2015 and Jan 19, 2016.

"Lay Hong's announcements (that there were no unannounced corporate developments that might have accounted for the trading activity) were not accurate, balanced, and fair, and failed to contain sufficient information to enable investors to make informed decisions," Bursa said in a statement today.

The regulator added the announcements had in fact denied an impending corporate exercise involving amongst others, a proposed bonus issue, share split and issuance of free warrants.

These had been announced on Feb 2, 2016, approximately two weeks after Lay Hong denied any corporate development in discussion for the second time.

"It was not acceptable for Lay Hong to allege 'non-finalisation' of the proposals after the board's approval of the salient terms on Jan 26, 2016," it said.

Bursa added it was not acceptable for the company and directors to say the proposals were not material as it was only at a conceptual stage and had yet to be finalised or approved by the board.

The directors, which included executive chairman Yap Hoong Chai, three executive directors, and four non-executive directors, were fined RM750,000 in total and given public reprimands.

"The public reprimand and fines imposed on the directors served as a deterrent and [were] appropriate and proportionate to the directors' aggravating conduct in their repeated failures to disclose the proposals accurately and on a timely basis," Bursa said.