No. 4 / 2010
Friday 22 January 2010
Bangkok, January 22, 2010 – The Settlement Committee imposed a fine of 500,000 baht (approx. USD15,151) on Anonchai Veeraprawat for manipulating the share price of Singha Paratech Plc (SINGHA) and another 500,000 baht on Olarn Viravan for insider trading of Phatra Insurance Plc (PHA)’s shares.
Anonchai was found manipulating SINGHA share price on June 9, 2009 during 15.44 - 15.57 hrs., when transaction value and share prices went higher than the normal market condition without supporting information or fundamental factors. The SEC then probed into the case and found that it was the result of Anonchai’s continuous trading orders in SINGHA shares via internet trading system to lure the investing public into the trading. As his action is deemed a violation of Section 243 (2) of the Securities and Exchange Act B.E. 2535 (1992) (SEA), the Settlement Committee therefore imposed a fine on him in the amount of 500,000 baht.
As for Olarn’s insider trading case, the SEC had obtained the referral from the Stock Exchange of Thailand. According to the SEC’s further investigation, the evidence showed that Olarn as chairman of the PHA’s audit committee had known the inside information, from the committee’s meeting on June 11, 2007 regarding the company’s merger plan with Muang Thai Insurance Co., Ltd. and the payment of special dividends to PHA shareholders in the amount of 50 baht per share. He then used such information, material to changes in the prices of PHA shares, to trade the shares for his own benefit through another person’s account during June 11-12, 2009 before the information was disclosed to the public on June 18, 2009. As his action is deemed taking advantage of investors in violation of Section 241 of the SEA subject to liabilities under Section 296 of the Act, the Settlement Committee fined him in the amount of 500,000 baht.
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