The regulator said in a statement that QMEI's share offering, which is currently ongoing, contravenes the relevant requirements under securities laws.
"The cease-and-desist directive was issued following the SC's findings that QMEI is offering its shares to the Malaysian public, including via the Quantum Metal Sdn Bhd's (QMSB) website/platform to QMSB members," it said.
It added that the share offering was carried out without seeking recognition and registering a disclosure document with the SC which is in contravention of Section 212 (5) of the Capital Markets & Services Act 2007.
"Consequently, the SC has also placed QMEI with its relevant details on the SC's Investor Alert List http://www.sc.com.my/investor-alert."