Following a referral from the Stock Exchange of Thailand (SET) in March 2023 and the SEC’s further investigation, the findings and evidence indicated that during 5 August – 9 November 2022, these five individuals committed offenses related to insider trading in TKN shares using undisclosed information they knew or possessed that positively affected TKN’s share price—specifically, TKN’s Q3/2022 net profit of 179.97 million baht, which was significantly higher than before, and an interim special dividend payout at a rate of 0.08 baht per share for that quarter—information materially positive to the share price but not yet publicly disclosed. After Mr. Itthipat (CEO and director) and Mr. Nutchatpong (Managing Director – Business Support), knew or possessed such inside information, Mr. Itthipat purchased TKN shares through Mrs. Phanida’s securities trading account; likewise, Mr. Nutchatpong purchased TKN shares through the accounts of two offenders, Miss Thitirat and Mr. Jakkaphan, before TKN disclosed this inside information to the SET on 10 November 2022.  
 
The actions of Mr. Itthipat and Mr. Nutchatpong in the TKN insider trading case constitute an offense under Section 242(1), in conjunction with Section 243(1), subject to penalties under Section 296 and Section 296/2 of the Securities and Exchange Act B.E. 2535 (1992).

The actions of Mrs. Phanida, Miss Thitirat and Mr. Jakkaphan in consenting to the use of their securities trading accounts by Mr. Itthipat and Mr. Nutchatpong constitute an offense of aiding and abetting TKN insider trading under Section 242(1), in conjunction with Section 315, subject to the penalties under Section 296 and Section 296/2 of the Act.    

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions* on the five offenders, requiring them to pay a civil penalty, a compensation at an equal amount to the benefit received or that would have been received, and a reimbursement of investigative expenses incurred by the SEC. Additionally, they are each barred from serving as director or executive in securities issuing companies or securities companies, as summarized below:      
          (1) Mr. Itthipat Peeradechapan shall pay a civil penalty, a compensation in the amount equal to the benefit that would have been received, and a reimbursement of investigative expenses incurred by the SEC, totaling 11,601,063 baht, and shall be barred from serving as director or executive in securities issuing companies or securities companies  for a period of 20 months;
          (2) Mr. Nutchatpong Peeradechapan shall pay a civil penalty, a compensation in the amount equal to the benefit that would have been received, and a reimbursement of investigative expenses incurred by the SEC, totaling 2,916,030 baht, and shall be barred from serving as director or executive in securities issuing companies or securities companies for a period of 14 months;   
          (3) Mrs. Phanida Wiriyakitnukun shall pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 625,197 baht, and shall be barred from serving as director or executive in securities issuing companies or securities companies for a period of 13 months; and
          (4) Miss Thitirat Panuvatvanich and Mr. Jakkaphan Sardpreechar shall pay a civil penalty and a reimbursement of investigative expenses incurred by the SEC, totaling 625,197 baht each, and shall be barred from serving as director or executive in securities issuing companies or securities companies for a period of nine months each.

The above barred periods of serving as director or executive in securities issuing companies or securities companies will take effect when the offenders sign a letter of consent, agreeing to comply with the civil sanctions as imposed by the CSC. In the event that an offender refuses to give consent to the sanctions, 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 that specified by the CSC.   
 
In all cases, the civil penalties and the compensations for the benefits received or would have been received from committing offenses shall be remitted to the Ministry of Finance as public revenue.       

Note:
* Civil sanctions are an enforcement measure under the Securities and Exchange Act B.E. 2535 (1992), as amended by the Securities and Exchange Act (No. 5) B.E. 2559 (2016), effective 12 December 2016. Section 317/1 stipulates that criminal offenses under the provisions of the said Act may be subject to civil sanctions against the offender.  

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