The stock market has the right to exercise its power, Bursa says in response to Serba Dinamik .’s lawsuit

KUALA LUMPUR (November 8): Bursa Malaysia Securities is the frontline regulator of the capital market and has the right to exercise its power under the listing requirements in the interest of maintaining an orderly and fair market, the exchange said in response to the legal action taken by Serba Dinamik Holdings Bhd.

Bursa stated that it will vigorously defend its position and not relinquish its legal roles and functions in the market.

“Timely disclosure of material information is an important pillar to ensure that the market is well aware of the information and that all investors are treated equally and can trade on an equal footing in terms of parity of disclosures.

“This is paramount to enable Bursa Securities to carry out its legal task,” Busa said.

The statement was issued after legal documents were served on it, including a sealed subpoena (OS), a preliminary injunction request and an affidavit confirmed by Serba Dinamik chairman and independent non-executive director Datuk Mohamed Ilyas Pakeer Mohammed on 3 November 2021 in support of the lawsuit.

According to the statement, Bursa has engaged a legal counsel to advise on the case and next course of action, while the preliminary injunction request has been set for the hearing this Thursday (Nov. 11), while case management for the OS is set for next Wednesday (17 November).

Serba Dinamik and Bursa are embroiled in a bitter dispute when the regulator demanded the oil and gas company disclose details of its September 30 update of factual findings on the Special Independent Assessment (SIR) submitted to three of the four independents. executives about two weeks ago on October 21.

Bursa subsequently suspended trading in the securities of Serba Dinamik on October 22 in accordance with Section 16.02(1)(c) of the principal listing requirements, in order to maintain an orderly and fair market.

The regulator then issued an ultimatum to Serba Dinamik on October 26 to disclose the SIR’s findings, but was denied. Serba Dinamik insisted in his Oct. 25 scholarship application that his directors had not received an “update of factual findings” from independent auditor Ernst & Young (EY).

In response, Bursa issued a statement noting that it had been notified that on October 22, soft copies of the update of the factual findings were being provided to the company’s independent non-executive directors, while physical copies thereof were on their request were submitted on October. 23.

In summary, the audit saga began in mid-May when KPMG notified the company’s independent directors of discrepancies regarding transactions amounting to RM 4.54 billion. The audit issues raised were based on the financial statements for the financial year ended December 31, 2020.

Since the audit disputes between Serba Dinamik and her former accountant KPMC came to light, the company’s largest shareholder, Datuk Dr. Mohd Abdul Karim Abdullah, who is also the general manager and general manager of the group, repeatedly told the investing public that there were no abuses. involved with the company.

Nevertheless, Mohd Abdul Karim, holding a 21.23% stake, sold off his entire holding of 55.9 million warrants before trading was suspended.

The block of derivatives, representing 6.34% of the total number of warrants, was sold when the price of the warrants reached near record lows.

Shares of Serba Dinamik last traded at 35 sen, down from RM 1.61 before the audit issues were disclosed to the public. Since then, about RM4.6 billion in market cap has evaporated after the stock’s heavy sell-off.

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Serba Dinamik sues Bursa for ‘excessive action’