Bursa Malaysia Securities Reprimands, Fines Dealer RM59,000 Over Share Manipulation

KUALA LUMPUR, May 11 (Bernama) -- Bursa Malaysia Securities Bhd has reprimanded and imposed a fine of RM59,000 on Nurendran a/l Parathan, for engaging in manipulative trading activities in the securities of numerous counters. 

The exchange operator said in a statement today that it has also ordered that Nurendran be struck off as a registered person (RP) if he is still registered with Bursa Malaysia Securities. 

Nurendran, who was then a salaried dealer’s representative of CGS-CIMB Securities Sdn Bhd at the time of the breach, carried out manipulative coordinated cross-trading activities over four months, through the Investment Account Trader (IVT) linked to him and trading accounts related to two of his family members. 

The exchange said the trading activities undertaken in the IVT and family members’ accounts showed manipulative characteristics. 

It said the manipulative, coordinated cross-trading activities have enabled his family members to sell at higher prices and created a false or misleading appearance of active trading in, and market or demand for, the securities concerned.

Also detected was the “increasing bid” strategy, where buy orders were raised progressively until reaching the price level of sell orders, as well as the “order slicing” technique used to absorb sell orders in small but repeated quantities.

The combination of these activities was found to have influenced market prices by maintaining or pushing up price levels.

Bursa Malaysia Securities said these demonstrated strong evidence of pre-arranged and coordinated trading between Nurendran’s account and his family members’ accounts.

It further said that by engaging in manipulative trading activities, Nurendran has failed his duties as an RP to observe professional conduct, integrity and fair dealing. 

The reprimand was imposed to serve as a deterrence to other RP, as such misconduct is viewed seriously by the exchange, it added. 

-- BERNAMA