KUALA LUMPUR (March 19): Bursa Malaysia has fined HwangDBS Investment Bank Bhd (HDBS) dealer Tan Kai Kiat RM312,000 for engaging in “manipulative” dealing activities involving various counters.

Among the counters Bursa said Tan had dealt with are Integrated Rubber Corporation Bhd, Narra Industries Bhd, CIMB Group Holdings Bhd, DRB-Hicom Bhd, Malaysian Bulk Carriers Bhd and UEM Sunrise Bhd, as well as the warrants of Genting Plantations, PPB Group Bhd, IJM Plantations Bhd, and Land & General Bhd.

The regulatory body has also ordered Tan to be struck off as a dealer.

In a statement, Bursa Malaysia said Tan had deliberately executed pre-arranged cross trades in the securities of eight counters, to benefit his family members at the expense of HwangDBS’ investment account, which suffered losses from the trades, over a period of about nine months.

Tan had also executed artificial buy orders by entering multiple orders in another three counters on several trading days, which were repeatedly modified or amended, including increasing the order size of these buy orders, so as to lower priority whenever these buy orders moved into priority queue, said Bursa.  

Bursa also said he had facilitated the disposals of related structured warrants in his mother’s account, by engaging in order book manipulation in the underlying shares of four counters.  

Bursa Malaysia said these “false trading activities” conducted by Tan had created misleading trading activities in the relevant securities, including the giving rise of artificial inflated volume through the cross trades done at prices which were being dictated or determined by Tan.

“The extent of the aforesaid manipulative activities on numerous counters had impacted the market or price, and caused disorderliness to the market for these securities,” the statement read.  

“Tan had put himself in conflicting situations, by placing his or his family members’ interests ahead of his responsibility as a registered person in his capacity as a dealer's representative (DR), which had brought into question as to whether he was a fit and proper person to be a registered person,” the statement added.