The Securities and Futures Commission (SFC) issued a restriction notice to Emperor Securities Limited and Get Nice Securities Limited to client accounts connected to suspected ramp-and-dump scam.
The Hong Kong regulator’s notice restricts the companies from processing certain assets held in 17 trading accounts. The scam involves manipulation of the market in late October 2021 in the shares of a company listed on the Stock Exchange of Hong Kong Limited, the SFC announced.
The notice prohibits the two brokerages from dealing or assisting in any way these trading accounts.
According to the official announcement, they are prohibited from the following activities:
(i) entering into transactions in respect of any securities; (ii) processing any withdrawals or transfers of securities and/or cash on the instructions of any authorized person of the accounts or by any person acting on their behalf; (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the accounts or by any person acting on their behalf; and/or (iv) assisting another person to dispose of any relevant property or deal with any relevant property in a specified manner.
The Hong Kong watchdog said that the action is has taken are in the best interest of investors as the investigation is still ongoing. The SFC did not disclose additional information on the case.
