In Malaysia, market players may soon need 'thicker hides.'
According to published reports, Malaysia's government has drafted a plan that would require caning for market violations - including insider trading, price manipulation and misleading investors. And if caning doesn't halt such deviations, "stiffer" punishment would ensue, government officials said.
New penalties are among a number of proposed amendments to the country's Securities Industry Act. Other proposed amendments to the law reportedly include raising the maximum fines to $1 million (Malaysian) and doubling the maximum jail sentences to 10 years.
The planned crackdown on securities violations is part of Malaysia's broader attempt to deal with rising white-collar crime. In the securities area, a raft of market violations reportedly occurred in 1993 when the market was booming.
Proposed new penalties caught some money managers' attention. "Can you imagine what they mean by stiffer penalties?" one U.S.-based fund manager asked rhetorically. "Beheadings?
"I hope the ruling doesn't apply to the selling of the wrong mutual fund."