Following a referral from the Stock Exchange of Thailand (SET) in 2022 and the SEC’s further investigation, the findings and evidence led to the belief that Mr. Saravoot Somwattana (a person with connection to NVD insiders) committed an offense by purchasing the securities while possessing undisclosed insider information. This information pertained to NVD’s financial performance in the fourth quarter of 2021, which showed a net profit of 496.06 million baht—a significant increase both year-over-year (YoY) and quarter-over-quarter (QoQ). The improvement was due to NVD changing its accounting method based on the revised purpose of land usage, resulting in a higher land appraisal value for the company. Such information had a positive impact on NVD’s share price. Mr. Saravoot Somwattana purchased NVD shares through his own securities trading account in a different manner from his usual trading behavior, prior to NVD disclosing this insider information to the SET on 23 February 2022, at 17.40 hours. As a result, he benefited from the subsequent increase in NVD’s share price after the information was publicly disclosed through the SET.

Such action by Mr. Saravoot Somwattana constitutes an offense for buying securities while knowing or possessing inside information as specified in Section 242(1) in conjunction with Section 244(4), which carries penalties under Section 296 and Section 296/2, as well as civil sanctions under Section 317/4 and Section 317/5 of the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016). 

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions* on the offender, requiring him to pay a civil penalty, a compensation at an equal amount to the benefit received, and a reimbursement of investigative expenses incurred by the SEC, totaling 1,790,110 baht. He is also barred from serving as director or executive in securities issuing companies or securities companies for 12 months.     
The above barred period of serving as director or executive will take effect when the offender signs a letter of consent, agreeing to comply with the civil sanction as imposed by the CSC. In the event that the offender refuses to give consent to the sanction, the SEC will submit the case in writing to the public prosecutor for filing a lawsuit in the Civil Court to seek the maximum applicable civil sanctions, which shall not be lower than those specified by the CSC.   

In all cases, the civil penalties and the compensations for the benefits received or that would have been 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), allows for civil sanctions to be imposed for 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