The Court of Appeal (COA), on 5 September 2022, affirmed the High Court’s decision in November 2020 that found Dato’ Sreesanthan Eliathamby had engaged in insider trading of Worldwide Holdings Berhad (Worldwide) shares in 2006.
Dato’ Sreesanthan acquired a total of 600,000 Worldwide shares between 7 June and 11 July 2006 while in possession of material non-public information relating to the proposed privatisation of Worldwide by Perbadanan Kemajuan Negeri Selangor.
At the material time, Dato’ Sreesanthan was a senior partner in a law firm which was engaged to act as the legal adviser of the proposed privatisation of Worldwide.
The Securities Commission Malaysia, in a statement released today said, in dismissing Dato’ Sreesanthan’s appeal, the Court of Appeal unanimously found no merits in the appeal and affirmed the judgment of the High Court as well as ordered Dato’ Sreesanthan to pay costs of RM50,000 to the Securities Commission Malaysia (SC).
The judgment of the High Court ordered Dato’ Sreesanthan to pay the SC RM1.99 million, which is three times the profits gained as a result of the insider trading. In addition, he was also ordered to pay to the SC a civil penalty of RM1 million and barred from being a director of any listed company for 10 years starting from 18 November 2020.
