Following a referral from the Stock Exchange of Thailand (SET) in January 2020 and the SEC’s further investigation, the findings and evidence indicated that between 5 June 2019 and 9 August 2019—prior to BIG’s disclosure of inside information regarding its Q2/2019 operating results, which showed a net profit of 35.86 million baht, a significant decrease compared to both quarter-over-quarter (QoQ) and year-over-year (YoY) basis relative to 2018, and constituted negative information that was material to the change of price or value of BIG’s securities and which was not generally disclosed to the public—Mr. Chitchai, who at the time served as BIG’s Deputy Chief Commercial Officer, had access to sales figures, event sponsorship revenues, and workshop arrangements that enabled him to assess operating performance and become aware of or possessed such inside information regarding BIG’s financial performance. Mr. Chitchai was also the son and brother of BIG’s directors who likewise had access to or possessed the same inside information. Mr. Chitchai sold BIG shares through his own securities trading account, thereby enabling him to avoid losses from the subsequent decline in BIG’s share price after the company disclosed the information to the Stock Exchange of Thailand on 9 August 2019 at 20:24 hrs.

Mr. Chitchai’s action constitutes an offense of selling securities while being a person who knew or possessed inside information under Section 242, in conjunction with Section 243(3) and 244(3) (4), which are subject to the penalties under Section 296 and Section 296/2, and civil sanctions under Section 317/4 and Section 317/5 of the Securities and Exchange Act B.E. 2535 (1992).  

The Civil Sanction Committee (CSC) has therefore resolved to impose civil sanctions* on Mr. Chitchai, comprising a civil penalty, a compensation equal to the benefit received or should have been received, and reimbursement of the investigative expenses incurred by the SEC, totaling 1,035,750 baht. Mr. Chitchai is also barred from serving as director or executive for 16 months.   

The civil sanctions imposed by the CSC – which include a civil penalty, a compensation equal to the benefit received or should have been received, and a bar from serving as director or executive as mentioned above – will take effect once the offender signs a consent letter agreeing to comply with the sanctions.

If the offender refuses to extinguish the case, the SEC will request the public prosecutor to file a lawsuit in the Civil Court seeking the maximum applicable civil sanctions, which must not be lower than those specified by the CSC.   

Civil penalties and compensation for benefits received or that should have been received from committing the offense shall be remitted to the Ministry of Finance as public revenue.      

Note: 

* 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