Court Confirms Interim Stay in Primus v Securities Commission Case Covers Both Document Notice and Investigation

Kuala Lumpur, Aug 13 — The Kuala Lumpur High Court has clarified that the interim stay order granted on 3 August 2026 in Primus Equities & Assets Sdn Bhd’s judicial review against the Securities Commission Malaysia (SC) covers both the SC’s document demand and its underlying investigation into Primus’s transactions with UBB Amanah Berhad, according to court correspondence reviewed by New Malaysia Times, provided by Primus and its legal counsel.

The clarification came at a case management held via e-review on 12 August 2026 before Deputy Registrar Mohd Hirman bin Ab Raub. The session was called after the SC — the respondent in Primus’s judicial review — sought to establish whether the 3 August interim stay extended only to enforcement of its document notice, or to its investigation as well.

Having reviewed the recording of oral submissions from the 23 July 2026 hearing and the presiding judge’s grounds of judgment, the Deputy Registrar confirmed that Justice Norliza Othman’s direction was that the interim stay covered both matters sought by Primus: a stay of the enforcement and effect of the SC’s notice dated 29 June 2026, including delivery of documents, until Primus’s leave application is disposed of; and a stay of the SC’s investigation into Primus’s transactions with UBB Amanah.

In her grounds of judgment for the original 3 August order, Justice Norliza said the stay was necessary to ensure Primus’s leave application would not be rendered “nugatory” — noting that without it, Primus would have been required to comply with the SC’s notice by 4 August, before its judicial review could be heard.

The SC had also applied to have the hearing of Primus’s leave application brought forward, but parties were informed that the judge directed the existing hearing date of 20 October 2026 be maintained, as it had been fixed with the agreement of all parties and the court’s schedule.

On the filing timeline, the court accepted dates proposed by Primus’s solicitors: Primus is to file its affidavit in reply to the SC’s affidavits by 4 September 2026, with written submissions from both parties due by 22 September 2026, and submissions in reply by 6 October 2026.

Jurisdictional dispute at the core of the case

The case originates from a judicial review application filed by Primus in July 2026, challenging the SC’s authority to compel production of records relating to the issuance and subscription of redeemable preference shares and ordinary shares between Primus and UBB Amanah, its 80% shareholder. Primus’s position is that these transactions are matters of company and trust law rather than securities law, and therefore fall outside the SC’s jurisdiction — a question the courts have yet to decide.

There is no criminal charge or judicial finding of wrongdoing against Primus, UBB Amanah, or their respective shareholders or directors; the case concerns the scope of the SC’s investigative jurisdiction rather than a determination on the underlying transactions.

UBB Amanah, a licensed trust company, has said separately that it is unable to comment substantively on the proceedings while the matter remains before the courts. The Securities Commission Malaysia did not respond to a request for comment on the 12 August clarification or on the scope of its investigation.

The Court of Appeal and, later, the High Court’s judicial review hearing on 20 October are expected to determine the underlying jurisdictional question.

–NMT