The decision to compound the four executives in the Serba Dinamik Holdings Bhd case has raised a myriad of questions, thoughts, and opinions. We must be mindful of the message that we are sending to the capital market and potential wrongdoers. The AGC will need to sufficiently distinguish the Serba Dinamik case from other cases in future and explain its reasons clearly. In the case of Serba Dinamik, many investors have suffered losses — they will not be able to recoup much of their losses, at least in the foreseeable future. The exercise of the discretion whether to compound or not to compound a capital market offence has far-reaching implications for the capital market.

Source: The Edge Markets April 17, 2022 16:02 UTC