KUALA LUMPUR (July 29): Bursa Malaysia Securities has publicly reprimanded former dealer's representative Ong Kai Boon, and fined him RM409,000 for engaging in manipulative trading activities involving shares in 11 counters.

Ong has also been ordered to be struck off from the register as a registered person of Bursa Securities, the regulator said in a statement on Monday.

It said Ong had, while being employed as a salaried dealer’s representative at Kenanga Investment Bank Bhd (Kenanga IB), violated specific rules and regulations governing the Malaysian securities market.  

The 11 counters were Inix Technologies Holdings Bhd, which is now known as Zen Tech International Bhd (KL: ZENTECH), Inix-Warrants A, K-One Technology Bhd (KL:K1), Vivocom International Holdings Bhd — now known as Vinvest Capital Holdings Bhd (KL:VINVEST) — Gets Global Bhd, which is now known as One Glove Bhd (KL:ONEGLOVE), Bintai Kinden Corp Bhd (KL:BINTAI), Sino Hua-An International Bhd — now known as Techna-X Bhd (KL:TECHNAX) — Solution Group Bhd (KL:SOLUTN), Melewar Industrial Group Bhd (KL:MELEWAR), Lion Industries Corp Bhd (KL:LIONIND), and HPP Holdings Bhd (KL:HPPHB).

Ong is alleged to have consistently engaged in order book manipulation for approximately six months in the securities of these counters. This is despite numerous trading concerns raised together with illustrations highlighted by Bursa Securities and actions including trading suspensions imposed by Kenanga IB on Ong, according to the statement.

The false market or manipulative trading activities were carried out in the investment account of Kenanga IB, and involved the activities of stacking/layering multiple buy orders, cancellation of buy orders that were in/had moved up to priority queue and/or before/after Ong’s disposal of the shares, said the regulator.

Ong continued to engage in manipulative trading activities despite clear warnings and actions taken by Bursa Securities and Kenanga IB, which the statement said demonstrates a blatant disregard for market regulations.

“Bursa Securities places strong emphasis on the need to maintain an orderly and fair market, and will not tolerate any acts or practices which could lead to false trading, manipulative activities and/or compromise the integrity of the market,” the regulator said.

It added that it will not hesitate to take severe actions, including suspension/striking off a registered person from the register, and imposition of fines which commensurate with the severity of the breach.

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