Financial authorities have conducted a search and seizure at the headquarters of NH Investment & Securities in connection with allegations that an employee of the company gained unfair profits by using undisclosed information.
According to financial authorities on July 25, the Capital Market Investigation Division of the Financial Services Commission has been carrying out a search and seizure at NH Investment & Securities since July 23. This is related to suspicions that an employee violated the Capital Markets Act by using undisclosed material information.
The employee in question is suspected of using undisclosed information obtained during NH Investment & Securities’ handling of a public tender offer for a listed company. It is reported that the employee is denying the allegations.
Financial authorities have reportedly identified circumstances in which one employee used this information to trade the relevant stock or passed the information to others during the process where NH Investment & Securities was acting as the lead manager or trustee institution for the public tender offer of a listed company.
The Financial Services Commission is also reportedly looking into similar suspicions involving other securities firms in addition to NH Investment & Securities.
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