Chao Chien-ming, son-in-law of Taiwan leader Chen Shui-bian, denied charges of insider trading on the first day of his trial in a Taipei local court.

Chao and five other people entered a not-guilty plea in court. Only Tsai Ching-wen, one of the directors at Waterland Securities, pleaded guilty, according to sources close to the court.

But Tsai denied that he had received information from insiders and disputed the alleged 105 million NT dollar profit referred to in the indictment.

Also on Friday, the higher court in Taiwan overturned a local court's decision to allow Chao to remain on bail after he forked out an additional 7 million NT Dollars surety.

A Taipei court spokesman said late on Friday the court would make a new ruling on Chao's bail on July 31.

On May 25, Chao was held on charges of insider trading relating to shares in the Taiwan Trust and Development Corp. On July 10, local prosecutors indicted Chao on charges of insider trading, demanding an eight-year prison sentence.

Chao, an orthopedist, is married to Chen's daughter Chen Hsing-yu. The couple have three children.

The insider trading scandal has caused a storm in Taiwan's political arena. The Kuomintang Party and People First Party have tabled a bill demanding that Chen Shui-bian step down.

Support for Chen has dropped dramatically. His family's image, and the image of the Democratic Progressive Party and the Taiwan authorities have been badly tarnished.

Source: Xinhua