SIDC Module 6 Securities offences question: pay in total under s.200(2)

SIDC Module 6Securities offences

The SC brings a civil action under s.200 against Rina for stock market manipulation under s.176. She made a gross gain of RM400,000. What is the most the court can order her to pay in total under s.200(2)?

A RM1,200,000
B RM1,400,000
C RM2,200,000
D RM2,600,000

Show the answer and explanation

Answer: C. RM2,200,000

Section 200(2) lets the SC (a) recover an amount not exceeding three times the gross pecuniary gain made or loss avoided, and (b) claim a civil penalty of up to RM1 million. Both may be sought together. Working: 3 x RM400,000 = RM1,200,000, plus the RM1,000,000 civil penalty = RM2,200,000. RM1,200,000 forgets the civil penalty. RM1,400,000 adds the penalty to the gain once instead of three times. RM2,600,000 adds the gain back on top of the three-times amount, which double counts it. Source: CMSA 2007 s.200(2) (as at October 2026).

Common mistake

Candidates either forget the separate civil penalty or treat 'three times' as 'gain plus three times'.

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Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.