High Court strikes out former suit challenging validity of insider trading law

Malaysian Reserve

15-05-2025

THE High Court (Special Powers Division) today struck out a civil suit filed by Malaysian Merchant Marine Bhd (MMM) former executive deputy chairman Datuk Ramesh Rajaratnam against the Securities Commission Malaysia (SC) and the Government of Malaysia.
Justice Datuk Amarjeet Singh ruled that the originating summons filed by Ramesh was an abuse of court process and awarded costs of RM5,000 to the SC and the Government of Malaysia respectively, SC said in a statement today.
On Sept 10, 2024, Ramesh commenced a civil suit at the High Court and sought a declaration that section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) was contrary to Articles 5(1), 8(1) and (2), 10(1)(a) and 13 of the Federal Constitution and therefore null, void, and of no effect immediately.
In response, the SC filed an application on Oct 8, 2024 to strike out the civil suit on the grounds that it was barred by res judicata, amounted to an abuse of process, and was a collateral attack upon his criminal conviction by the Sessions Court and his ongoing criminal appeal before the High Court.
Ramesh was previously charged at the Kuala Lumpur Sessions Court on April 29, 2015 with three charges of insider trading under section 188(2)(a) of the CMSA. He was convicted following a full trial and was sentenced to five years imprisonment and a fine of RM3 million (in default three years imprisonment) for each charge.
In relation to the appeal to the High Court, the statement said Ramesh's conviction and sentence on all three charges were set aside on the grounds of judicial copying by the trial judge.
The Court of Appeal subsequently reinstated his conviction and sentence for the first charge upon the Public Prosecutor's appeal and remitted the case to the High Court for the case to be heard on its merits. The appeal on merits is pending hearing before the High Court. — TMR