MAS takes action to prevent insider trading

SINGAPORE - The Monetary Authority of Singapore (MAS) has taken action against a department manager for contravening the insider trading provision under the Securities and Futures Act (SFA).

Mr Shi Jiangtao was a department manager in the investment department of China Minmetals Non-ferrous Metals Company Limited (CMNMC). He was also a member of the project team that was involved in the proposed takeover of Equinox Minerals Limited.

Between March 14 and April 1 last year, Mr Shi purchased shares with knowledge of non-public materially price-sensitive information.

He bought 342,000 contracts for differences (CFDs) relating to Equinox shares, 206,000 CFDs relating to Minmetal shares, and sold 213,000 CFDs relating to Minmetals shares. He used his and his wife's trading account to buy the shares.

Mr Shi admitted to violating Section 218(2)(a) of the SFA, and paid a civil penalty of $100,000 without court action. He has also cooperated fully with MAS in their investigation.

The trades were subsequently cancelled by CMC Markets Singapore Pte Ltd.

Section 218(2)(a) of the SFA prohibits a person who is in possession of materially price-sensitive information concerning a corporation (to which he is connected), which he knows is materially price-sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities of that corporation.

wjeanne@sph.com.sg