The Financial Markets Authority (FMA) will take action against Auckland-based retail investor Kok Ding Cheng, for alleged market manipulation of Rua Bioscience shares.
The case centres on five small orders for Rua’s shares that Cheng made over a 10-day period during late-2020 via a broking account he held with ASB Securities.
The FMA alleges the trades were made for the purposes of increasing the price and/or demand for Rua shares at a time when he held a material shareholding in the company.
The FMA is seeking a declaration of contravention, a civil pecuniary penalty and costs.
NZ RegCo, NZX’s frontline regulatory agency, referred the conduct after ASB Securities had earlier reported potential concerns about the orders. NZ RegCo and the FMA work closely together to detect and respond to market manipulation.