Bursa Reprimands Two Former RHB Dealer Reps For Short Selling

Bursa Malaysia Securities has taken enforcement actions against two dealer’s Representatives (DRs) for breaches of the Rules of Bursa Malaysia Securities for engaging in short-selling activities in the accounts of three clients. :

Mooi Weng Hou and Kwan Chun Han who were commissioned DRs of RHB Investment Bank Berhad had breached the Bursa rules where the DRs had engaged in prohibited/unpermitted short-selling activities in the trading accounts of his three (3) clients and executed and instructed KWAN to execute numerous instances of intraday short selling trades involving substantial volume in Anzo Holdings Berhad, AT Systematization Berhad, Bioalpha Holdings Berhad, Careplus Group Berhad, Comfort Gloves Berhad (COMFORT), Waja Konsortium Berhad (formerly known as Connect County Holdings
Berhad), PDZ Holdings Bhd (PDZ), Vsolar Group Berhad; and CW Hang Seng Index.

Bursa said it views misconduct that compromises the integrity of the market seriously and will not tolerate any unlawful trading practices.

These nine counters were not Approved Securities and hence, short selling, including Intraday Short Selling was prohibited in these counters (Prohibited Short Sales); and Mooi had executed and instructed Kwan to execute numerous instances of IDSS trades involving substantial volume in two counters, namely Supermax Corporation Berhad and Top Glove Corporation Berhad which were Approved Securities when IDSS was suspended by the Exchange.

Bursa said Mooi had played a primary role as he had proposed short selling as a trading strategy to his 3 Clients and instructed Kwan to proceed regardless of RHBIB’s System Alert and Kwan’s alert that the orders amounted to short selling activities. Kwan had played a secondary role by assisting/facilitating Mooi’s breaches and had acted as a mere order taker.

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