THE stock exchange has fined Peregrine Brokerage $300,000 for knowingly helping substantial shareholders of several listed companies to create the false impression that their shares were being actively traded.
Fanny Chung, secretary of the stock exchange's disciplinary committee, said Peregrine had breached 545(1) and 545(3) of the exchange's rules.
The exchange investigation was triggered by an action in September by the Securities and Futures Commission (SFC), which disciplined Peregrine and two of its directors for activities linked to misconduct under the Securities Ordinance.
The disciplinary action was linked to four new listings with which the territory's most high-profile brokerage and most successful investment bank had been associated.
After the SFC investigation, Peregrine agreed to make an ex-gratia payment of $3.5 million to the exchange's compensation fund.
The investigation also resulted in the suspension of the securities licence of one of Peregrine's brokers 'for engaging in trading activity prejudicial to the interests of the investing public'.
Ms Chung said Peregrine had 'knowingly assisted substantial shareholders of a number of listed companies to create a misleading appearance of active trading [Rule 545(1)] including the bringing about of sales or purchases of shares on behalf of such substantial shareholders'.
