In doing so, she had contravened section 197(1A)(b) of the Securities and Futures Act.
According to MAS, Tan had pledged her Aspial and Far East Orchard shares as collateral for share margin purposes.
For three consecutive days in May 2016, she bought shares of both companies near, or during the close of the days’ trading sessions, which had the effect of artificially raising and setting the closing prices of these shares on all three days.
As the closing prices of these shares had an impact on the value of her collateral, her collateral value increased correspondingly, MAS says.
“Trading behaviour that has the effect of distorting prices adversely affect the fair and orderly functioning of our capital markets,” says Loo Siew Yee, assistant managing director (policy, payments & financial crime).
“MAS will take firm action against participants who are reckless as to whether their trades are likely to create a false appearance in the prices of securities,” she adds.
