Mr. Tay Ming Hin was convicted on August 26, 2024, for engaging in false trading involving shares of KOP Limited, a company listed on the Catalist exchange. He received a four-week prison sentence after pleading guilty to a charge under section 197(1)(b) of the Securities and Futures Act (SFA). This charge stemmed from his actions that created a misleading appearance regarding the price of KOP’s shares on 79 separate occasions.
Between August 7, 2018, and August 21, 2019, Mr. Tay operated three margin trading accounts, primarily using KOP shares as collateral. During this period, the price of KOP shares was generally declining. In an attempt to prevent margin calls in his accounts, Mr. Tay purchased KOP shares, artificially inflating the share price.
His trading activity led to a closing price that was higher than it would have been without his interventions on 79 occasions. This manipulation of the market price not only compromised the integrity of the trading environment but also put other investors at a disadvantage.
The conviction resulted from a thorough investigation conducted by the Monetary Authority of Singapore in collaboration with the Commercial Affairs Department of the Singapore Police Force. This investigation was initiated following a referral from the Singapore Exchange Securities Trading Limited, highlighting the regulatory efforts to uphold market integrity.
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