He bought the company’s shares to push up the share price in order to avoid margin calls being triggered in his margin trading accounts
Tay Ming Hin, listed as the 17th largest shareholder of Catalist-listed KOP, was convicted for false trading in the company’s shares.
Tay was sentenced to four weeks’ imprisonment, after pleading guilty to one charge under section 197(1)(b) of the Securities and Future Act for creating a misleading appearance of KOP’s share price on 79 occasions.
Between Aug 7, 2018, and Aug 21, 2019, Tay had three margin trading accounts, with KOP shares forming the bulk of the collateral in these accounts, the Monetary Authority of Singapore (MAS) said on Monday (Aug 26).
Because KOP’s share price was generally on a downward trend during this period, he bought the company’s shares to push up the share price in order to avoid margin calls being triggered in his margin trading accounts.
MAS noted that these purchases caused the closing price of KOP’s shares to be “higher than it would otherwise have been” on 79 occasions.
Tay was charged for his alleged misconduct in end-March this year.
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In KOP’s annual report for FY2023, Tay was listed as the company’s 17th largest shareholder, with 0.44 per cent of the total shareholding or about 4.9 million shares.
KOP is a holding company with business interests in real estate development, hospitality and entertainment.
Tay’s conviction was the result of a joint investigation between MAS and the Commercial Affairs Department, following a referral from the Singapore Exchange.
Shares of KOP last traded on Friday, remaining flat at S$0.031.
