KUALA LUMPUR — Bursa Malaysia Securities has publicly reprimanded and fined a dealer’s representative RM59,000 for engaging in manipulative trading activities involving multiple securities counters.
In a statement today, Bursa Malaysia Securities said it had also ordered Nurendran A/L Parathan to be struck off as a Registered Person (RP), if he was still registered with the exchange.
The exchange said Nurendran, who was a salaried dealer’s representative with CGS-CIMB Securities at the material time, had breached several provisions under the Rules of Bursa Malaysia Securities and related directives.
According to Bursa Malaysia Securities, the manipulative trading activities were carried out over a four-month period through an intra-day trading account allocated to Nurendran and involved coordinated cross trades with accounts belonging to two of his family members maintained at another participating organisation.
The exchange said the activities included coordinated cross trades, increasing bid trades and order slicing, which created a false or misleading appearance of active trading and market demand for the securities involved.
It said the trading patterns enabled the family members to sell shares at higher prices and demonstrated strong evidence of pre-arranged and coordinated trading activities.
Bursa Malaysia Securities said Nurendran had failed to discharge his duties as a registered person to exercise proper skill, care and diligence, and to uphold professional conduct and market integrity.
“The public reprimand was imposed to serve as a deterrence to other Registered Persons and create awareness on the serious view taken by Bursa Malaysia Securities against such misconducts that involved market offences,” it said.
The exchange stressed that it would not tolerate acts or practices that could compromise market integrity or public confidence, adding that stern action would be taken against those involved in such misconduct. —Bursa Malaysia
