KUALA LUMPUR (Nov 24): The Securities Commission Malaysia (SC) has charged Datuk Lim Kim Chuan, a former chief executive officer of Melewar Industrial Group Bhd, and two other individuals for insider trading.

According to a statement by the SC today, Lim was charged at the Kuala Lumpur Sessions Court for acquiring 398,000 units of M3nergy Bhd shares between Aug 6, 2008, and Sept 11, 2008, whilst in possession of material non-public information.

"The SC alleged that the material non-public information referred to in the charges relates to the conditional voluntary takeover offer by Melewar Equities (BVI) Ltd, a substantial shareholder of Melewar Industrial Group Bhd, to acquire M3nergy shares.

"Lim, who was also a former director of M3nergy Bhd, faces a total of 11 charges under the Capital Markets and Services Act (CMSA). Lim is said to have acquired the said shares through the accounts of Tay Hup Choon and Theng Boon Neoh," said the regulator.

Tay and Theng were both charged for abetting Lim in the commission of the offences, the SC said. The charges against Lim, Tay and Theng were read out before Sessions Court Judge Norsharidah Awang.

Lim was granted bail of RM250,000 with one surety while Tay and Theng were granted bail of RM150,000 and RM120,000 respectively with one surety each. All three claimed trial to the charges.

"The offence of insider trading under section 188(2) of the CMSA 2007 is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million," said the SC.

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