Kuala Lumpur: The Securities Commission Malaysia (SC) has warned investors over the increased use of blogs, forums and social media platforms to spread false and misleading information on certain companies in order to perpetrate 'pump and dump' schemes.In a statement on Wednesday, the SC said, the perpetrators would accumulate shares at lower prices before posting positive sentiments about the companies, with the intention to spur interests in the shares in order to drive up their prices."When unsuspecting investors buy the shares, it gives the perpetrators an opportunity to sell the shares they hold at a profit. Investors who have bought shares at the inflated price will suffer losses when the hype eases," said the capital markets regulator.
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The SC and Bursa Malaysia have recently identified a blog 'Bonescythe Stock Watch', which was found to have published various articles that contained statements and forecasts that were misleading and deceptive – an offence under Section 178 of the Capital Markets and Services Act 2007 (CMSA)."Following SC's intervention action, the blog has been removed," the SC added.
The SC advised investors to always exercise diligence and verify the legitimacy of information before making an investment decision."Investors are reminded to be cautious of the risk of fraud and, when in doubt, to seek advice from persons who have been licensed by the SC," it said. –Bernama
