The Securities Commission (SC) is looking into complaints lodged against companies that allegedly submitted misleading financial reports in order to be listed on the second board of the Kuala Lumpur Stock Exchange.

Finance Ministry parliamentary secretary Hashim Ismail told the Dewan Rakyat today that the SC was investigating the matter and would take action against any company which has mislead the board.

To date, the SC has taken action against one listed company, Ganad Corporation Bhd, that was found to have given false information in its financial report for a six-month period ending Nov 30, 1995, he revealed.

"Its director was charged under the Securities Commission Act 1993 on May 15 last year and the case is pending," said Hashim.

Auditors who are found to have approved false reports will also face action under the same Act, he added.

Hashim was replying to questions raised by PAS Member of Parliament (MP) for Machang, Mohd Yusoff Mohd Nor.

Nanyang takeover

In an unrelated matter, the Domestic Trade and Consumer Affairs Ministry said today that MCA's recent acquisition of two Chinese dailies, Nanyang Siang Pau and China Press , did not require its approval.

In a written reply to Kamarudin Jaafar, the PAS MP for Tumpat, the ministry explained that company takeovers do not need an approval from the ministry or the Registrar of Companies (ROC).

On May 30, despite strong public objection, MCA acquired Nanyang Press Holdings from the Hong Leong Group, owned by tycoon Quek Leng Chan, in a controversial RM230 million deal.