The Securities and Futures Commission (SFC) in Hong Kong has initiated criminal proceedings at the Eastern Magistrates’ Court concerning alleged insider trading activities linked to Transmit Entertainment Limited. The individual involved is alleged to have engaged in transactions related to the company’s shares during a specific timeframe between late August and mid-October in 2017, while holding a significant position within the company and possessing insider information.
The case involves suspicions that this person advised or influenced others to trade in these shares during the period in question. No plea has been entered at this stage, and the court has adjourned the proceedings until late March 2025.
The accused has been released on bail with several conditions imposed. These include posting bail in the amount of $200,000, maintaining a specified residence, and notifying the authorities should there be any changes to his living arrangements. Additionally, there is a requirement to inform the SFC 24 hours prior to any travel outside of Hong Kong.
Transmit Entertainment Limited, which was previously known as Pegasus Entertainment Holdings Limited, was listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited on October 31, 2012. It transitioned to the Main Board of the Stock Exchange on January 9, 2015. Following a significant change in ownership when the accused disposed of his controlling stake, the company underwent a rebranding to become Transmit Entertainment Limited on March 13, 2018.
These developments indicate a continued focus on regulating insider trading activities within the financial sector in Hong Kong, as authorities work to uphold market integrity and ensure fair trading practices.