Insider trading has received increased regulatory scrutiny in the Malaysian market over the past decade, posing several important questions for those who are privy to confidential information.
In our previous Legal Update titled “Insider Trading – What Directors of Public Listed Companies Need to Know (Part 1)“, we looked at what exactly is insider trading, determining materiality in the context of insider trading, as well as the interface between the Capital Markets and Services Act 2007 (CMSA) and Bursa Malaysia’s Main Market Listing Requirements (“Bursa’s Listing Requirements“). In this Legal Update, we will delve into: (i) considerations that directors need to take into account in the event they do not trade but procure another person, whether directly or indirectly, to buy or sell securities when the directors are in possession of inside information; (ii) closed periods as defined by Bursa’s Listing Requirements; and (iii) actions that can be taken by Malaysian regulatory authorities in the event of a breach of insider trading prohibitions.
For more information, click here to read the full Legal Update.
