• Rajiv Louis paid S$434,912 penalty without court action
  • Louis purchased Bank Danamon shares in 2012 ahead of DBS offer

The Monetary Authority of Singapore said it sanctioned Rajiv Louis, a former Indonesia country head at UBS Group AG, for insider trading in the shares of PT Bank Danamon Indonesia.

Louis agreed to pay a civil penalty of S$434,912 ($312,965) without court action, the MAS statement said. It said he bought Danamon shares on March 30, 2012 through his wife’s bank account in Singapore after obtaining non-public information on the proposed acquisition of Danamon by DBS Group Holdings Ltd. After DBS announced its bid for Danamon in April 2012, Louis made a profit of S$173,965 on his trades, the MAS added.

Louis left UBS in November 2012, and joined Carlyle Group LP the following year as a managing director of the firm’s Asian buyout team, responsible for investments in Indonesia.

Rob Stewart, a Hong Kong spokesman at UBS, declined to comment. Brian Zhou, a Beijing-based spokesman at Carlyle Group, didn’t immediately respond to a request for comment.

The MAS action against Louis “reflects MAS’ firm resolve to act against anyone who contravenes our market conduct laws, whether he is based in Singapore or overseas,” said Lee Boon Ngiap, the MAS assistant managing director for capital markets, in the statement.

The current maximum civil penalty for insider trading in Singapore is S$50,000 or three times the profit earned from the offense. In April, the MAS said a man and his niece paid a total of S$11.8 million in penalties for insider and false trading.

Enhanced Penalties

Singapore introduced the civil penalty regime for insider trading in 2004. In August, the MAS proposed raising the sums levied on market misconduct, and called for its enforcement officers to be given the same criminal powers as financial police, including searching for and seizing evidence.

DBS abandoned its $6.5 billion bid for Danamon in 2013 after Indonesia changed its bank ownership rules that would have limited DBS’s stake in the Indonesian bank to 40 percent.

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