SEC to prop astray trade penalties

A patron enters a 7-Eleven in Bangkok. Executives of CP All, user of a preference store chain, were found guilty of insider trade in 2015. SEKSAN ROJJANAMETAKUN

The Securities and Exchange Commission (SEC) is set to tie a chastisement for listed companies’ executives found guilty of astray bonds trade practices.

The pierce follows clever open critique over 4 of CP All’s tip executives being slapped with usually fines for insider trading.

Guidelines for new punishment are approaching to be finalised this year, secretary-general Rapee Sucharitakul said.

He pronounced a new penalties competence be identical to those used for bonds and mutual account companies’ executives, banning them from holding government positions in any securities-related association if they were found guilty.

“The SEC’s house of directors would like us to tie punishment opposite listed companies’ executives found guilty of astray trade practices, as a stream manners have been used for 10 years. But we can't contend during a impulse how a law will be revised,” Mr Rapee said.

Unfair trade practices embody insider trading, batch strategy and fraud.

The SEC is authorised to excellent usually those employees who use astray trade practices if they beg guilty.

The bonds watchdog early final month announced 4 CP All executives — executive authority Korsak Chairasmisak, vice-chairman Piyawat Titasattavorakul, vice-chairman Pittaya Jearavisitkul and Athueck Asvanund, a vice-chairman and organisation warn of True Corporation — were fined a combined 33.3 million baht for regulating inside information to squeeze shares of cash-and-carry hulk Siam Makro Plc forward of a 7-Eleven preference sequence operator’s notice it would buy out Makro during above-market value.

The group’s punishment has been criticised by a open as being too lenient.

Voravan Tarapoom, president of a Association of Investment Management Companies (AIMC) and a Federation of Thai Capital Market Organizations, applauded a pierce to tie a penalties for listed companies’ executives, anticipating they will compare those for batch brokerage houses and mutual account companies.

Investors now compensate courtesy to corporate governance, she said.

Ms Voravan recently pronounced a AIMC would wait until a finish of this month to see either CP All’s house would examination a position on a 4 guilty executives. Earlier, a company’s review cabinet and eccentric directors pronounced they would take no serve movement opposite them.

Mr Rapee pronounced final year a SEC launched investigations for 70 purported cases of batch manipulation, swelling rumours that led to conjecture and insider trading, 14 cases of rascal by executives, 15 cases of unapproved derivative brokers and 3 cases per other allegations.

It also examined 21 bonds brokers, 16 mutual account and other associated companies, 129 listed companies, and educated 5 listed companies to correct their financial statements.

He pronounced a SEC, underneath a three-year vital devise using to 2018, will strengthen a collateral marketplace by enhancing a rival potency and efficacy of a batch exchange, brokers, mutual account companies and agents. The SEC will rectify manners to make them some-more practical, Mr Rapee said.

Separately, Mr Rapee hopes a Thai financial zone will pass World Bank and International Monetary Fund’s Financial Sector Assessment Program slated for 2019, as it will attract some-more offshore funds. The research assesses a Bank of Thailand, a SEC and a Office of the Insurance Commission.

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