Saturday, May 21, 2022

Sharing stock accounts against the law, says securities commission

The SC says every securities account opened with a central depository must be in the name of the owner or an authorised nominee.

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The Securities Commission Malaysia (SC) today said that Malaysian Anti-Corruption Commission (MACC) chief Azam Baki had gone against the law in sharing central depositories accounts (CDS), a day after the anti-graft body’s advisory board cleared him of any conflict of interest in the purchase of shares from certain companies in 2015.

In a statement to MalaysiaNow, the SC said under Section 25 of the Securities Industry (Central Depositories) Act 1991 or Sicda, every securities account opened with a central depository must be in the name of the beneficial owner of the deposited securities or the name of an authorised nominee.

“The SC will be in touch with the parties involved, including Azam Baki, for an explanation and to verify the statements made, as well as to gather any relevant evidence,” it said.

Yesterday, the Anti-Corruption Advisory Board said the board members were satisfied with Azam’s explanation on the matter, and that no further investigation would be conducted.

Azam himself said he would take legal action against those who had levelled accusations at him over the ownership of shares in certain companies.

He also said the shares in question had been transferred to the account of his brother, Nasir Baki.

“Regarding the claim that I control many companies, it is a lie spread to destroy my reputation,” he said at a press conference.

“I strongly deny it, and once I have obtain advice from a lawyer, I will take legal action against those who tarnished my reputation.”

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