Don’t let other access to your trading account.
Notice! It is subject to a fine of up to RM3 million or up to 10 years in prison to lend someone your stock trading account!
It is acknowledged that using another person’s stock trading account to make stock trades may be against Section 25(4) of the Securities Industry (Central Depository) Act 1991. Any securities account formed pursuant to this Act shall be opened in the name of the recipient or the authorised agent.
Anyone who violates Section 25 may be subject to a punishment of up to RM3 million, up to 10 years in prison, or both. The Securities Commission of Malaysia is strictly enforcing Section 25. (4).
On Bursa Malaysia, using another person’s account to trade stocks is nothing new. This is frequently used by persons to conceal their wealth or engage in insider trading. Someone was penalised RM25,000 in May 2011 for lending out a stock trading account.
There is no longer a need to use other people’s accounts to trade stocks because it is so simple to open your own trading account.
