Bursa Malaysia publicly reprimands and fines RM500,000 to Dataprep and directors

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Dataprep Holdings Bhd and five of its directors for breaches of the Bursa Malaysia Securities Main Market listing requirements (Main LR).

The five directors of Dataprep were imposed total fines of RM500,000, Bursa Malaysia said in a statement.

Dataprep was publicly reprimanded for breach of paragraph 9.35A(1)(a) of the Main LR in respect of the company’s announcement dated March 2, 2021, in response to the unusual market activity (UMA) query from Bursa Malaysia Securities on March 1, 2021.

The UMA response had stated/confirmed, amongst others, that Dataprep was not aware of any corporate development relating to the group’s business and affairs, including those in the stage of negotiation/discussion, that had not been previously announced that might account for the UMA.

Bursa Malaysia said the UMA response was inaccurate and failed to share crucial information about the proposed acquisitions for Covid-19 screening technology, even though the board had tentatively approved them in a meeting on Feb 17, 2021, before the UMA query on March 1, 2021. This left investors without enough details to make informed decisions.

Approximately two weeks after the UMA response, Dataprep revealed a memorandum of collaboration for the proposed Covid-19 screening contracts on March 12, 2021, and the proposed acquisitions on March 15, 2021.

It said all the five directors of Dataprep at the material time had breached paragraph 16.13(b) of the Main LR for permitting the company to commit the breach and were imposed total fines of RM500,000.

“Bursa Malaysia Securities views the breach seriously as the requirement to ensure timely and accurate disclosure of material information is fundamental to ensure the investors and public are kept fully informed of and have equal access to all material information to facilitate informed investment decisions. This is critical for building and maintaining corporate credibility, market integrity and investor confidence.

“Bursa Malaysia Securities has also reminded Dataprep and its board of directors of their responsibility to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public,” Bursa Malaysia said.