By A. Stephanie
Ramesh Rajaratnam
The Securities Commission Malaysia (SC) charged Malaysian Merchant Marine Bhd (MMM) former executive deputy chairman Ramesh Rajaratnam with three insider trading charges today at the Kuala Lumpur Sessions Court.
All three counts were made under the Capital Markets and Services Act 2007. The besieged shipowner MMM was delisted from the Main Board of Bursa Malaysia in 2011 due due to weak financials.
Ramesh was charged with three counts of disposing a total of 10,200,800 MMM shares whilst in possession of non-public information three separate occasions on: Jan 11, 2010; Feb 19, 2010; and Feb 22, 2010.
In a press statement released today, SC said the charges were preferred before Sessions Court Judge Norsharidah Awang, who fixed bail at RM200,000 and ordered Ramesh to surrender his international passport to the court.
With respect to the first charge, SC alleged that the non-public information related to the proposed downgrade by Malaysian Rating Corporation Berhad (MARC) of its credit rating on MMM’s RM120 million Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) from the category of investment grade to non-investment grade.
Meanwhile, the non-public information referred to for the second and third charges, was related to the classification of MMM as a PN17 company following its shareholders’ equity falling below 25% of its issued and paid up capital.
This was noted in the company’s filing to the exchange dated in March 5, 2010.
The offences carry a punishment of an imprisonment term not exceeding 10 years and a fine of not less than RM1 million, SC stated.
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