Earlier this week, the Securities and Exchange Commission (SEC) again demonstrated to its state regulating peers that it is doing its job to enforce rules reported the Bangkok Post
The capital market fined top executives and shareholders of five companies listed on the Stock Exchange of Thailand for insider trading, its second crackdown in three months on top managers who have abused their power in publicly traded firms for their own benefit or for their cronies.
In December, the SEC moved to slap four top executives of CP All Plc, Thailand’s biggest convenience store operator, with hefty financial penalties.
It fined Korsak Chairasmisak, chairman of the executive committee, Piyawat Titasattavorakul and Pittaya Jearavisitkul, two vice-chairmen of the executive committee, and Athueck Asvanund, the firm’s chief legal officer, a total of 33.34 million baht for using inside information to buy shares in Siam Makro Plc.
On Wednesday, the regulator said it had banned Chai Sophonpanich, chairman of Bangkok Insurance Plc (BKI), from being a director at Bangkok Life Assurance (BLA) for three years for his involvement in insider trading. He has also been barred from working in capital markets for the same period. The ban took effect yesterday, but he is not prohibited from working at BKI.
Bangkok Insurance Public Company Limited (BKI).
The Criminal Fining Committee has imposed a fine of 500,000 baht on Chai Sophonpanich for disclosing inside information for other persons to purchase shares of Bangkok Insurance Public Company Limited (BKI).
Following a referral from the Stock Exchange of Thailand, the SEC’s further inspection has revealed that Chai, then chairman and chairman of the executive board of directors of BKI, proposed a dividend payment plan for BKI shareholders at the ratio of five existing shares to two dividend shares, on top of the normal dividend payment plan for the operating performance of 2013.
This was material information that would have supported an upward trend of the BKI share price. Chai disclosed such inside information to other persons who purchased BKI shares during 24-25 February 2014 before the information became publicly known on 28 February 2014. Such action was deemed taking an unfair advantage of other people.
Such actions are deemed to have taken advantage of other investors and breached Securities and Exchange Act Section 241; therefore the SEC’s Settlement Committee fined him 500,000 baht.
Other listed companies’ executives found guilty of unfair trading practices by the securities watchdog in Wednesday’s SEC announcements were:
WHA Corporation Plc
– Somyos Anantaprayoon, current chairman of WHA Corporation Plc, who was fined 500,000 baht for telling two newspapers — with the articles published on Oct 27, 2014 — that the company was in talks to acquire a listed company worth 50 billion baht, though such information had not yet been made public.
The Criminal Fining Committee has fined Somyos Anantaprayoon for dessiminating news that may have led other persons to understand that the share price of WHA Corporation Plc. (WHA) would rise or fall, and such information had not been disclosed to the Stock Exchange of Thailand (SET).
Following a referral from the SET and the SEC’s further inspection, it was found that Somyos, then Chairman, CEO and a major shareholder of WHA, had released news to the public through two media publications issued on 27 October 2014 with the key message that WHA was negotiating a business deal worth approximately 50 billion baht to take over a listed company that had long been established for more than 20 years in the same industry as WHA with a multiple P/E of 10.
His misconduct with regard to the dessimination of facts that had not yet been disclosed to the SET and contained material information that could have influenced investors’ decision making and the price movements of WHA shares being traded on the SET, was in violation of Section 239 and liable to the penalites under Section 296 of the Securities and Exchange Act of 1992. He was imposed a criminal fine of 500,000 baht
Siam Global House (Global)
– Witoon Suriyawanakul, chairman of the management committee and director of Siam Global House (Global), and three other shareholders, who were given a combined fine of 25.3 million baht for insider trading.
The SEC found that Mr Witoon bought 8.02 million shares and 3.5 million units of warrants of Global from June 29 to Aug 23, 2012 using accounts of people who have a relationship with him in order to take advantage of inside information regarding SCG Distribution’s planned acquisition of Global. The other three shareholders were viewed as accomplices. The acquisition was disclosed to the public on Aug 27, 2012.
The Criminal Fining Committee has imposed a total fine of 25,322,064.39 on four offenders for using insider information to purchase ordinary shares and warrants of Siam Global House Public Company Limited (GLOBAL).
The four offenders are: (1) Witoon Suriyawanakul, (2) Kunnatee Suriyawanakul, (3) Apilas Suriyavanakul, and (4) Kriangkai Suriyawanakul.
The SEC, meanwhile, has filed a criminal complaint against two other offenders, namely (1) Surasak Chuntori, and (2) Ekkamon Chuntori, for using insider information to purchase GLOBAL shares.
Following a referral from the Stock Exchange of Thailand, the SEC’s further investigation has revealed that Witoon and the three other persons in the same group purchased GLOBAL shares and GLOBAL-W warrants and gained benefits from such transactions. Witoon, who was chairman of the management committee of GLOBAL, had the decision making power over the terms and conditions of an agreement between GLOBAL and SCG Distribution Co., Ltd. (SCG), a wholely owned subsidiary of The Siam Cement Public Company Limited, with regard to SCG’s plan to hold at least 30 percent of GLOBAL’s total voting shares by purchasing GLOBAL ordinary capital shares through a private placement.
In this regard, SCG would make a partial offer of GLOBAL shares, which was expected to increase business strength for GLOBAL.
Most of these guilty executives are from the country’s richest families. According to Forbes’ 2015 list of Thailand’s 50 richest:
– Mr Chai’s half brother, Chatri Sophonpanich, was ranked 14th with estimated assets of US$1.5 billion (about 52 billion baht)
– Mr Somyos and his then-wife Ms Jareeporn together were ranked 32nd with estimated assets of $765 million
– Witoon Suriyawanakul was ranked 48th and worth $470 million
Without fear of reprisals or of political ramifications from these powerful and super-rich figures, the SEC did its job honestly, even though the investigation process was tedious and time consuming — a model other state regulators or law enforcers could have adopted in the war on corruption without wasting rhetoric.
Commented the Bangkok Post
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