To attain the SEC’s mission to develop and supervise the Thai capital market
to ensure efficiency, fairness, transparency and integrity, the SEC exercises
administrative and criminal sanctions against wrongdoers. The enforcement
action emphasizes due process of law to ensure that it is legitimate whereby
the exercise of the enforcement authority is based on the provision of law and
supporting evidence and also takes into account the right of the alleged person
to present evidence and explanation against the accusation (right to be
Thus, the procedure can assure investor confidence in the Thai capital
market and support development and sustainable growth of the market as well as
the national economy.
In practice, the SEC is always committed to complying with the provisions of
laws under its supervision and, as a state agency, authorized to exercise the
administrative power in connection with its supervisory role and thus subject
to the Administrative Procedure Act of 1996 in case of administrative
For criminal sanction, the SEC’s duty is in the preliminary stage of
criminal justice administration where it exercises statutory power to gather
evidence and investigate the matter suspected to be in contravention of laws
under the SEC’s supervision. The SEC, nonetheless, has no power to initiate
criminal proceedings against the wrongdoers in its own name but has to refer
the case of violation of non-compoundable offences with sufficient evidence to
the competent inquiry officer for further investigation.
The check and balance mechanism has been put in place, i.e. appointment of
the Audit Committee and the Office of the Internal Audit. The Audit Committee
has a broad range of duty that covers not only review on the SEC’s financial
statements and information but also review and giving opinion to the SEC Board
on the SEC’s internal control system, compliance with statutory provisions,
rules and regulations, supervising the SEC’s internal audit unit and
undertaking other duties as assigned by the SEC Board.
Under the SEC structure, an enforcement committee comprising the executive
officers (except the Secretary-General) and departmental heads has been set up
to give opinion whether the matter in consideration is deemed a contravention
of law before proposing to the Secretary-General for approval. Where technical
issues are involved, the SEC regularly appoints external experts such as
auditor and financial advisor to give their professional opinions in support of
the SEC’s action.
To increase efficiency of the SEC’s enforcement action and to be in line
with capital market regulators in the international arena, the SEC has proposed
amendment to the Securities and Exchange Act of 1992 to include civil
sanctions. At present, the draft legislation is under the consideration of the
Ministry of Finance.