Bursa reprimands and fines DR for manipulative trading of Magna Prima shares

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KUALA LUMPUR: Bursa Malaysia has publicly reprimanded, fined and suspended dealer’s representative (DR) Lim Chin Wat for 12 months for manipulative trading activities on Magna Prima Bhd (fundamental: 0.6; valuation: 0.3) shares.

In a statement this evening, the local exchange said Lim was involved in churning and rollover activities over several months, which had created a false or misleading appearance of active trading of Magna Prima shares in the market with its price being traded/maintained/dictated at certain levels by making use accounts held by his wife, father and sister.

Bursa, however, did not disclose exactly when Lim conducted these activities, nor did it specify the amount of profit pocketed by Lim, who was a commissioned DR of Kenanga Investment Bank Bhd during the aforesaid misconduct.

As a DR, according to the stock exchange authority, Lim was obligated to carry out his duties including ensuring maintenance of a fair and orderly market dealing.

“As such, it is not acceptable for LCW (Lim) to justify that he was merely executing orders as instructed by his clients/act without making proper assessment of the orders received/executed and exercising reasonable due care and diligence in undertaking dealing activities for his clients so as to avoid/prevent/refrain from any manipulative/false dealing activities,” the Bursa’s statement read.

The exchange also instructed Lim to take up training on conduct or professionalism of DRs/market offences.

Magna Prima was trading one sen or 1.03% lower at 96 sen today, with some 92,600 shares transacted, giving it a market capitalisation of RM322.9 million.

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