Thursday 28 Mar 2024
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KUALA LUMPUR (Apr 29): The Securities Commission Malaysia (SC) has charged Datuk Ramesh Rajaratnam, the former executive deputy chairman of Malaysian Merchant Marine Bhd (MMM), with three counts of insider trading under the Capital Markets and Services Act 2007.

Ramesh was charged at the Kuala Lumpur Sessions Court with three counts of disposing a total of 10.2 million MMM shares while in possession of non-public information in 2010. The alleged disposals of the MMM shares were made on Jan 11, Feb 19 and Feb 22 that year. (Earlier, the 10.2 million MMM shares were erroneously reported as RM10.2 million. The error is regretted.)

The offences carry a punishment of an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.

Ramesh, 50, claimed trial to all three charges this morning at the Jalan Duta Criminal Sessions Court.

Presiding judge Norsharidah Awang set RM200,000 for bail and a surety.

The case was set for mention on May 29.

Ramesh, who works as a consultant now to countries such as India and China, was required to surrender his passport on the mention date.

Ramesh was charged for being involved in insider trading on Jan 1, 2010 for disposing 5 million shares of Malaysian Merchant Marine Bhd (MMM) after being in possession of information that a proposed downgrade by Malaysian Rating Corporation Bhd (MARC) of its credit rating on MMM's RM120 million Al-Bai Bithaman Ajil Islamic Debt Securities.

On the second and third charge, he was charged under the same offence for disposing 201,300 units and 4,999,500 units of MMM's share on Feb 19, 2010 and Feb 22, 2010 respectively after obtaining the information that MMM was classified as an affected listed issuer pursuant to Practice Note 17 (PN17) of MMM.

The shipping and logistic company had announced that it fell into PN17 since March 2010 and subsequently delisted from Bursa Malaysia on March 17, 2011.

Ramesh was represented by R. Thiruchelvam and C. Paul Aisu, while the prosecution team consisted of Hashley Tajudin and Munira Masood.

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