No. 21 / 2009
Friday 13 February 2009
Bangkok, February 13, 2009 – The SEC’s Settlement Committee appointed by the Minister of Finance under Section 317 of the Securities and Exchange Act of 1992 (SEA) imposed a total fine of 5,506,530.65 baht on three former manager and marketing officers of Far East Securities Co., Ltd., namely (1) Shine Bunnag, (2) Nattada Kaewma and (3) Sarunya Simaporn for manipulating share price of D.T.C. Industries Plc. (DTCI).
Following the Stock Exchange of Thailand (SET)’s report on irregular trading of DTCI shares from March 1, 2006 to April 4, 2006, the SEC probed into the case and found that such irregular trading was done through five trading accounts by Shine, in his position as marketing manager, who used trader ID of Nattada and Sarunya, marketing officers under his supervision, to send trading orders for DTCI shares.
With the intention to mislead the public into believing that DTCI shares were traded in great volume or with changes in price, the offenders had collusively and in concealment sent a series of trading orders at proximate amount, price and time, causing the price of such shares to change inconsistently with the normal market condition. Besides, sale orders for DTCI shares at different offer prices were placed in an orderly manner during pre-opening hours after which purchases were made on a continuous basis during trading sessions to drive up and sustain the price levels of such shares.
The misconduct of those persons was a violation of Section 243 and subject to liabilities under Section 296 of the SEA. The supporters were also liable to the penalties under Section 86 of the Penal Code. The Settlement Committee therefore imposed a fine on Shine in the amount of 4,839,863.99 baht while Nattada and Sarunya were fined in the amount of 333,333.33 baht each.
As for Far East Securities Co., Ltd., the SEC ordered the company’s board of directors to address the shortcoming in its internal control to make sure that the company’s controlling and monitoring systems function effectively.