Insider trading forms larger proportion of SC's investigations

As insider trading activities formed a larger proportion of its investigations, the Securities Commission (SC) vows to actively tackle such breaches to safeguard market integrity and resilience.

"We will actively pursue such breaches to achieve credible deterrence vis-a-vis the improper use of material non-public information," SC Chairman Tan Sri Ranjit Ajit Singh said.

Out of the 17 individuals charged in 2016, 10 were accused of insider trading.

Enforcement actions were pursued not only against those who allegedly traded while in possession of inside information, but also those who were said to have communicated the information to other persons.

He said the perception of fairness, with all participants having equal access to relevant information, was integral to sustaining investor and public trust in Malaysia's capital market.

Hence, SC intensifies effort to reinforce proper standards of market conduct and ensure firms continue to put the interest of investors at the centre of their businesses, he said in the SC's 2016 Annual Report released here, today.

This includes focus on thematic assessment on governance, sales practices, third party receipts and proprietary trading.

In addition, continued surveillance of market and corporate activities allowed for early detection of market irregularities and pre-emptive actions.

He said the SC was also concerned about the escalating levels of cyber risk, as witnessed in the recent spike of incidents globally.

However, achieving the common goal of cyber resilience requires timely and collective action by the SC, capital market entities and national stakeholders.

"SC's involvement in the global policymaking informs and ensures Malaysia's regulatory, supervisory, and enforcement efforts continue to be closely aligned to global standards.

"International cooperation and cross-border exchange of information with other jurisdictions further strengthen our ability to discharge our regulatory responsibilities, particularly with the increasingly borderless nature of financial transaction," he said. -- Bernama