The Monetary Authority of Singapore (MAS) said yesterday it has taken action against Mr Tarek Abdel Tawab Mohamed Abdel Bary for insider trading in the shares of mainboard-listed CSE Global.

Mr Tarek Bary has admitted to contravening the Securities and Futures Act and will pay MAS a civil penalty of $423,000, after agreeing to settle the matter out of court. In addition, he is liable for $61,457.90 in legal costs and disbursements.

He has also given a voluntary undertaking not to be a company director or be involved in the management of a company for a period of two years with effect from Dec 18.

In August 2011, CSE Global reported a loss of $7 million in its second quarter. It stemmed from cost overruns linked to four projects undertaken by the engineering firm, including two projects in Saudi Arabia. Following the disclosure, the price of CSE shares fell by 13.9 per cent. Mr Tarek Bary was then managing director of CSE-Transtel, a wholly owned subsidiary of CSE Global.

On April 8, 2011, prior to CSE Global's announcement of its second-quarter results, he sold 500,000 CSE Global shares while in possession of non-public, price-sensitive information concerning cost overruns for the Saudi projects. It allowed him to avoid a $168,955 loss.

On March 1 this year, MAS took action in the courts against him for insider trading. On Monday, he agreed to settle the matter out of court.

MAS assistant managing director (capital markets) Lee Boon Ngiap said: "MAS does not tolerate any form of insider dealing... Listed companies are reminded to ensure that parties who have access to confidential and price-sensitive information are fully aware of their obligations under the law."