Former deputy executive chairman charged with insider trading

A former deputy executive chairman of a shipping company, Malaysian Merchant Marine Berhad pleaded not guilty in the Sessions Court here today to three counts of insider trading while in possession of inside information of the company's shares.

R. Ramesh, 51, allegedly had the non public information on the proposal by Malaysian Rating Corporation Berhad (MARC) to lower its credit rating on Al-Bai 'Bithaman Ajil Islamic Islamic Debt Securities (BaIDS) Malaysian Merchant Marine Berhad.

Anyone with knowledge of such information would materially affect the price or value of the shares.

Consequently the accused had disposed more than 10 million units of his shares which were held in the Central Depository System.

He was charged for committing the three offences at Bursa Malaysia Securities Berhad, Exchange Square, Bukit Kewangan, here on Jan 11, Feb 19 and Feb 22, 2010 under Section 188(2)(a) of the Capital Markets and Services Act 2007 which carries a maximum jail term of 10 years and a minimum fine of RM1 million upon conviction.

Judge Norsharidah Awang allowed Ramesh bail of RM200,000 with one surety and ordered him to surrender his passport to the court after returning from abroad for business matters on May 29.

The court set the same date May 29, for re-mention.

Prosecuting officers from the Securities Commission, Hashley Tajudin and Munira Masood appeared for the prosecution while lawyers R. Thiruchelvam and C. Paul Aisu represented the accused.