SFC commences insider dealing prosecutions over proposed privatisation of IDS Group

Hong Kong SFC

The Hong Kong Securities and Futures Commission (SFC) announced that has commenced criminal proceedings in the Eastern Magistrates’ Court against Mr Lam Yik Tung, Mr Chan Lit Chun and Mr Anson Mui Ka Leung for alleged insider dealing in the shares of Integrated Distribution Services Group Limited (IDS) (IDS was privatised and its shares were withdrawn from listing on the Stock Exchange of Hong Kong Limited (SEHK) on 1 November 2010).

The SFC alleges that between 5 and 9 August 2010, Lam counselled or procured his friends Mui and Chan to trade in IDS shares after knowing about a proposal by Li & Fung Limited to privatise IDS through his professional connection with IDS. Mui and Chan traded in IDS shares after they had obtained information on the proposed privatisation from Lam (Li & Fung Limited is listed on the SEHK).

No plea was taken from the three defendants and the hearing was adjourned to 26 July 2017.

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