Wednesday June 17, 2009
Deposit-taking firm reined in
By LOURDES CHARLES
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Securities Commission (SC) has raided an illegal deposit-taking company that is believed to have raked in hundreds of millions of ringgit involving gold investments and the issuance of redeemable preference shares.
The joint operation saw BNM and SC officers raid Bestino Group Berhad and its related companies in Ipoh and Petaling Jaya yesterday.
The raids were conducted following numerous complaints and inquiries from the public who claimed the company promised a whopping 36% dividend a year or 3% returns per month.
“The SC has ordered the company concerned to immediately cease issuing preference shares or securities of any kind to the public with immediate effect.
“Through a scheme it marketed, Bestino Group claimed to be involved in gold investments and the issuance of redeemable preference shares, promising monthly returns of 3% in dividend payments.
“Bestino Group has failed to seek the SC’s approval for the offering of their preference shares to the public and to register a prospectus with the SC as required under the law,” BNM and SC said in statement.
It is learnt such schemes were also in breach of subsection 25(1) of the Banking and Financial Institutions Act 1989 (BAFIA) and the offering for subscription or purchase of preference shares breached Section 212(2) of the Capital Markets and Services Act 2007.
Both BNM and the SC have advised members of the public to be cautious of deposit-taking and investment schemes offering extraordinarily high returns within a short period. They want the public to seek verification on such investment offers through various channels such as the Internet, phone calls or seminars organised by individuals or companies that are not licensed, approved or authorised by the relevant authorities.
The public can refer to the list of licensed institutions authorised to accept deposits which is available on BNM’s website (www.bnm.gov.my) and the list of licensed intermediaries authorised to conduct regulated activities which is available on the Securities Commission’s website (www.sc.com.my).
For further inquiries, the public can also contact:
> BNMTELELINK (Customer Service Call Centre) at 1-300-88-5465.
BNMLINK - Customer Service Walk in Centre) Block D Bank Negara Malaysia, Jalan Dato Onn Kuala Lumpur. (Mon to Friday between 9am - 5pm).
> Securities Commission
Investor affairs and Complaints Department, Securities Commission Malaysia, 3, Persiaran Bukit Kiara, Bukit Kiara, Kuala Lumpur.
General line 03-6204 8000, 6204 8999, 6204 8777 or e-mail: aduan@seccom.com.my
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