Thursday, 24 October 2013

The Malaysian Insider retracts untrue report on Securities Commission

Article on The Malaysian Insider:

"The Malaysian Insider retracts a report on the SC over the Sime-E&O case

With regards to The Malaysian Insider's report on August 10, 2012 headlined "SC to order Sime general offer for E&O, say sources", The Malaysian Insider would like to retract the said report on the Securities Commission (SC) as it is untrue.

The statement in the said article that was attributed to the SC was untrue and was published without verification with the SC. The report has now been withdrawn as it is untrue and false.

We apologise to the Securities Commission for the said untrue report. - October 24, 2013."

I wrote about this article:

"the share price of E&O is up RM 0.42 in very heavy volume, the warrant is up a whopping 3,199%, also in very heavy volume.

Looks like the authorities have another possible case of insider trading to deal with since there has been no official announcement."

Some persons must have made a lot of money trading E&O on that fateful day, August 10, 2012, while other must have lost their shirt. I hope the authorities are looking into that.

I like to re-iterate the words of P. Gunasegaram:

Nothing less than the integrity of our markets is at stake here. For too long, market manipulation and insider trading have been excused on the grounds that it makes the market, that it provides excitement and that it provides opportunities to make money for both traders and brokers.

But really, that's not the purpose of the market. The purpose is to provide a place where investors and others can seek a fair value for the assets they buy and sell through a fair, transparent and straightforward process that provides equal information and opportunity to all.

The economic aim for all that is to provide investors with a place to raise capital efficiently so that business can flourish.

It is lamentable that this basic aim of capital markets seems to be lost and it has become a place for wheelers, dealers and plain crooks to make money in less than honourable, and even illegal, ways.

What a shame! And will it ever change?

No comments:

Post a Comment