MAS Fines Businessman S$70,000 for Insider Trading in GS Holdings shares

Singapore's Monetary Authority has fined businessman Tay Joo Heng S$70,000 for insider trading in GS Holdings Limited shares.

Key Insights

  • Singapore’s Monetary Authority has fined businessman Tay Joo Heng S$70,000 for insider trading in GS Holdings Limited shares.
  • Tay admitted to purchasing 515,000 GHL shares while possessing non-public information about the sale of a subsidiary.
  • In addition to the fine, Tay has agreed to a two-year ban from serving as a company director or being involved in corporate management.

SINGAPORE (MarketsXplora) – Singapore’s central bank has fined a local businessman S$70,000 ($52,000) for insider trading in shares of GS Holdings Limited (GHL), the regulator said on Monday.

The Monetary Authority of Singapore (MAS) imposed the civil penalty on Tay Joo Heng following a joint investigation with the Commercial Affairs Department into trading activity surrounding GHL’s sale of a subsidiary.

Tay, the sole shareholder and director of GSG Capital Pte Ltd, admitted to violating insider trading rules under the Securities and Futures Act, the MAS said in a statement.

The case revolves around GHL’s announcement on November 19, 2019, of a conditional agreement to sell its loss-making subsidiary, GreatSolutions Pte Ltd, to GSG Capital for S$2 million.

“Mr. Tay exploited non-public information for personal gain,” a MAS spokesperson told MarketsXplora. “Such actions undermine market integrity and will not be tolerated.”

According to the regulator, Tay purchased 515,000 GHL shares over 13 days between October 4 and November 18, 2019, while possessing insider knowledge of the impending sale.

The announcement triggered a 58% spike in GHL’s trading volume the following day, with 915,600 shares changing hands.

Tay has paid the penalty without court action and voluntarily agreed to a two-year ban from serving as a company director or involvement in corporate management.

The MAS did not disclose whether Tay profited from the share purchases or if he has divested his holdings in GHL.

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