SINGAPORE - The Monetary Authority of Singapore (MAS) said on Thursday (Nov 30) it has taken action against Mr Tarek Abdel Tawab Mohamed Abdel Bary for insider trading in the shares of mainboard-listed CSE Global Limited.
Mr Tarek Bary has admitted to contravening the Securities and Futures Act and will pay MAS a civil penalty of S$423,000, after agreeing to settle the matter out of court. In addition, he is liable for S$61,457.90 in legal costs and disbursements.
Mr Tarek Bary 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, 2017.
CSE Global reported a loss of S$7 million in its 2011 second quarter in August that year. The loss was due to cost overruns in relation to four projects undertaken by the engineering company, including two projects in Saudi Arabia. Following the disclosure, the price of CSE shares fell by 13.9 per cent.
At the time, Mr Tarek Bary was the managing director of CSE-Transtel Pte Ltd, a wholly owned subsidiary of CSE Global. On April 8, 2011, prior to CSE Global's announcement of its second quarter results, Mr Tarek Bary sold 500,000 CSE Global shares while in possession of non-public, price-sensitive information concerning the cost overruns for the Saudi projects.
The sale of the shares allowed him to avoid a loss of S$168,955.
On 1 March this year, MAS commenced a civil penalty action in the State Courts of Singapore against Mr Tarek Bary for insider trading. On Nov 27, he agreed to settle the matter out of court.
Mr Lee Boon Ngiap, MAS assistant managing director (Capital Markets), said, "MAS does not tolerate any form of insider dealing. Any individual who has access to material non-public information should not trade in the company's shares.
"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."