Malaysia's securities watchdog has vowed to continue to take tough action on stock manipulation after shocking the market by curbing trade on a company whose share price was skyrocketing, reports said.
The unusual move by the Securities Commission and Malaysia's bourse on May 11 to declare Iris Corporation a "designated security", contributed to five straight days of losses in the markets last week.
A designated security compels investors to pay for any purchases up-front and in cash.
"I want to make it very clear that the Securities Commission will not tolerate any kind of market abuse," commission chairman Zarinah Anwar was quoted as saying in the Edge financial weekly.
"It is very clearly written in the law what market offences are," she said. "We will not hesitate to take the necessary action when we see these laws are being broken."
Iris Corp, a Malaysian security systems company, saw its share price soar 1,500 percent over eight months before it was made a designated security to curb excessive speculation, according to the Star daily.
Zarinah, who took up her post last month, also expressed concerns over allegations commission staff were taking kickbacks for approving corporate deals and vowed to chase up any reports.
"I'm very concerned about it, of course. I've heard this talk as well," Zarinah was quoted as saying in the New Straits Times over the weekend.
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