Following a referral from the Stock Exchange of Thailand (SET) in October 2022 and the SEC’s further investigation, it was found that from 30 March to 7 July 2022 (a total of 64 business days) two individuals, namely (1) Miss Paranya Rudjanapronpajee, and (2) Mr. Chookiat Rujanapronpajee, who were connected through personal relationships and financial transactions, colluded to manipulate the price or trading volume of MSC securities by sending buy or sell orders for the securities, or by buying or selling the securities in a continuous manner, with the intention of causing the price or the trading volume of the securities to deviate from normal market conditions. 

In this case, both offenders colluded by dividing responsibilities to buy and sell MSC shares in a manner that manipulated the price or trading volume. Their behavior included continuously pushing up the price until MSC shares rose or reached the daily maximum price (ceiling price), conducting matched trades between themselves, and sending buy and sell orders while knowing that their group had already ordered trades of the same securities at similar prices, volumes, and closely timed intervals in order to disguise the trading volume. This caused other investors to mistakenly believe that MSC shares had high trading volume and to follow suit with the same trading activities, resulting in the rise of MSC share price. The purpose was to profit from the price margin in MSC share trading and to increase the MSC share price so that its value would be close to the value of the transaction in which Miss Paranya had conducted a share swap of SABUY shares with TKS. This constituted misleading the general public regarding the price or trading volume of MSC shares, as well as trading MSC shares in a continuous manner, causing the price or trading volume of MSC shares to deviate from normal market conditions.

The actions by the two offenders above constitute an offense of colluding to manipulate the price or trading volume of MSC securities under Section 244/3 in conjunction with Section 244/5(2)(3) of the Securities and Exchange Act B.E. 2535 (1992) (“SEA”), in conjunction with Section 83 of the Criminal Code, subject to the penalties under Section 296, Section 296/1 and Section 296/2 of the SEA. 

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions* on the two offenders, as follows: 
          (1) Miss Paranya is required to pay a civil penalty, compensation in an amount equal to the benefit received or to be received, and reimbursement of the investigation expenses incurred by the SEC, totaling 249,254,347 baht, and is suspended from trading securities or derivatives for 14 months, and is barred from serving as a director or executive of securities issuing companies and securities companies for 28 months;    
          (2) Mr. Chookiat is required to pay a civil penalty and reimbursement of the investigation expenses incurred by the SEC, totaling 594,117 baht, and is suspended from trading securities or derivatives for 11 months, and is barred from serving as a director or executive of securities issuing companies and securities companies for 22 months. 

The prohibition from holding the director or executive positions above shall take effect from the date on which the offenders sign a letter of consent agreeing to comply with the civil sanctions as prescribed by the Civil Sanction Committee. Otherwise, the SEC will request the public prosecutor to file a lawsuit in the Civil Court to seek the maximum applicable civil sanctions as prescribed by law, which shall not be lower than the those determined by the CSC.

Civil penalties and compensation for benefits received or to be received from committing offenses shall be remitted to the Ministry of Finance as public revenue.      

Remark:    
* Section 317/1 of the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016), stipulates that civil sanctions may be imposed on criminal offenses under this Act.

Details of civil sanctions and associated procedures are available at: https://www.sec.or.th/EN/pages/lawandregulations/civilpenalty.aspx