Civil Penalty Enforcement Action For Insider Trading

Singapore, 8th January 2009... The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Mr Chu Chwee Tiak for insider trading under Section 219(2)(a) of the Securities and Futures Act (SFA).

2   See Hup Seng Limited (SHS), a company listed on the Singapore Exchange Securities Trading Ltd (SGX-ST), announced on 25 July 2006, that it had entered into an agreement to acquire Speedo Corrosion Control Pte Ltd for a total consideration of S$3.5 million from C T Holdings Pte Ltd (CTH).

3   Mr Chu is a director and shareholder of CTH.  On 21 July 2006, he purchased one million SHS shares while he was in possession of non-public price sensitive information concerning the impending agreement between SHS and CTH.  As a result of the purchase, he made a gain of about S$10,000.

4   Mr Chu has admitted to civil penalty liability for contravening Section 219(2)(a) of the SFA and has paid a civil penalty of S$50,000 to MAS without court action.  Mr Chu has cooperated fully during the course of MAS’ investigation.

Notes to Editor:

i) Insider Trading under section 219(2)(a) of the SFA :

Section 219(2)(a) of the SFA prohibits a person who is in possession of material price sensitive information concerning any securities, which he knows is material price sensitive and not generally available, from subscribing for, purchasing, selling, or entering into an agreement to subscribe for, purchase or sell those securities.

ii) MAS made an announcement on 1 September 2008 that civil penalty action was taken against Mr Yap Sew for insider trading in connection with the same matter.

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