According to the referral from the Stock Exchange of Thailand (SET), persons were found to have taken action liable to be an offense related to the sales of SQ shares by using inside information on the company’s operating loss in the third quarter of 2019, resulting in the net loss of 266.30 million baht, the highest loss since the SET listing of SQ securities on 26 October 2016. The loss was caused by the declining service revenues and the higher costs of service provision. 

The SEC’s further investigation revealed that during 8 October 2019 - 4 November 2019, Penprapa – wife of an SQ executive and director and at the time serving as an advisor to the Organization & Human Resource Development Department of SQ, thus liable to be a person knowing or possessing such inside information above – sold 3,853,600 SQ shares in her possession through the trading account of Satida, her daughter, who rendered assistance or convenience by letting Penprapa use her trading account to sell the SQ shares. The findings also revealed that during 7 – 8 November 2019, Surapol – Company Secretary and Director of the Budget Management & Project Funding Department, thus liable to be a person knowing or possessing such inside information – sold 39,000 SQ shares in his trading account. The actions above allowed Penprapa and Surapol to avoid a loss due to the reduced price of SQ shares after the company disclosed the inside information related to its operations in the third quarter in 2019, which incurred a net loss, to the SET at 08.10 hours on 12 November 2019.  

The action of Penprapa in this case was deemed a contravention of Section 242(1) in conjunction with Section 244(5), while the action of Satida was deemed a contravention of Section 315 in conjunction with Section 242(1), and the action of Surapol was deemed a contravention of Section 242(1) in conjunction with Section 243(2) of the Securities and Exchange Act B.E. 2535 (1992) (SEA). These individuals are subject to the penalties under Paragraph 1 of Section 296 and Section 296/2 of the SEA, as amended by the SEA No. 5 in 2016. 

The Civil Sanction Committee (CSC) has resolved to impose civil sanctions* on those three offenders, comprising civil fines, compensations in the amount equal to the benefit received or would have been received, reimbursements of investigative expenses incurred by the SEC, and a bar from serving as director or executive in securities issuing companies or securities companies for specified periods, with the following details: 

(1) Penprapa shall pay a civil fine, a compensation in the amount equal to the benefit received and a reimbursement of investigative expenses incurred by the SEC, totaling 2,423,419 baht, and shall be barred from serving as director or executive for a period of 12 months;  

(2)  Satida shall pay a civil fine and a reimbursement of investigative expenses incurred by the SEC, totaling 760,714 baht, and shall be barred from serving as director or executive for a period of eight months;   

(3) Surapol shall pay a civil fine, a compensation in the amount equal to the benefit received and a reimbursement of investigative expenses incurred by the SEC, totaling 770,668 baht, and shall be barred from serving as director or executive for a period of 12 months; 

The prohibition periods for the offenders serving as director or executive will commence on the dates when the offenders sign letters of consent, agreeing to comply with the civil sanctions imposed by the CSC. Otherwise, the SEC will submit the cases to the public prosecutor for filing a lawsuit in the Civil Court to seek an imposition of civil sanctions with the maximum applicable statutory penalties, which shall not be lower than the penalties specified by the CSC.

In all cases, the civil fines and the compensations for the benefits received or would have been received from committing the offenses shall be remitted to the Ministry of Finance as public revenue.

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Remark: 

* Section 317/1 of the SEA B.E. 2535 (1992) as amended by the SEA (No.5) B.E. 2559 (2016) prescribes that the criminal offenses under this Section shall be deemed the offenses whereby civil sanctions may be imposed on the offenders.

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