Following a referral from the Stock Exchange of Thailand (SET) in August 2016 and the SEC’s further investigation, it was found that Mrs. Vally Sungsiri and Miss Sunisa Chutinaton conspired together by continuously placing orders to buy and sell KDH shares in a manner that pushed the price upward. They placed large-volume orders at multiple price levels, including aggressive buy orders and sell orders at prices several notches above the market price, in order to entice other investors to follow suit and force trading of KDH shares within a set price range ("Pump and Dump"). The aim was to accumulate KDH shares for themselves and others to later sell in a big lot transaction or to profit from trading KDH shares (as the case may be). This manipulation caused the price of KDH shares to move inconsistently with normal market conditions, during the periods from 26 February – 7 March 2016, and from 8 March – 18 April 2016.

The actions by Mrs. Vally Sungsiri and Miss Sunisa Chutinaton constitute the manipulation of the KDH share price under Section 243(1) in conjunction with Section 244 and Section 243(2) of the Securities and Exchange Act B.E. 2535 (1992) (SEA) in conjunction with Section 83 of the Criminal Code, which carry penalties under Section 296 of the SEA. Currently, the SEA (No. 5) B.E. 2559 (2016) prescribes that such actions remain offenses under Section 244/3 in conjunction with Section 244/5, which are liable to penalties under Section 296, Section 296/1 and Section 296/2. Additionally, Section 47 of the SEA (No. 5) B.E. 2559 (2016) allows for the imposition of civil sanctions on such offenses. 

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions on both offenders, requiring Mrs. Vally Sungsiri to pay a civil penalty totaling 15,297,812.50 baht and  Miss Sunisa Chutinaton to pay a civil penalty totaling 1,917,937.50 baht. 

Civil sanctions imposed by the CSC will take effect when offenders sign a letter of consent, agreeing to comply with the sanctions. In the event that any offenders refuse to consent, the SEC will submit the cases in writing to the public prosecutor for filing a lawsuit in the Civil Court to seek the maximum applicable civil sanctions, which must not be lower than those specified by the CSC.   

Civil penalties from committing offenses shall be remitted to the Ministry of Finance as public revenue.    

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