No. 44 / 2013
Wednesday 24 April 2013
Bangkok, April 24, 2013 – The SEC revealed that the Settlement Committee imposed a total fine of 28,472,689.29 baht on Choavalit Limpanich, Yanyong Nitisaroj, and Ziriwat Anunkusri, for purchasing STP&I Plc. (STPI)’s shares using inside information.
With the referral from the Stock Exchange of Thailand (SET), the SEC investigation revealed that Choavalit, Yanyong and Ziriwat had purchased STPI shares through Ziriwat’s securities trading account. Their actions were considered as taking an advantage over other investors due to their use of non-public information on Pulto LNG Project value where STPI collected an additional 2,212 million baht from its counterparty on top of the main contract. The said information was material to the STPI share price. This resulted in STPI’s Q1/2010 performance having a gross profit of 1,788.1 million baht, or an increase of 193.47 percent from its Q1/2009. Choavalit, the project director responsible for Pluto LNG project, by virtue of his position, had access to this inside information from the signing of the project closeout contract. Also appeared that Yanyong was the person who provided the trading account of Ziriwat, co-invested by purchasing STPI shares through such provided account, and obtained profit sharing according to the proportion invested among three of them.
Choavalit’s action was in violation of Section 241 of the Securities and Exchange Act B.E. 2535 (1992) (SEA) and thus liable to penalties under Section 296 of the said Act. Yanyong and Ziriwat’s actions, as accomplices, were in violation of Section 241 of the SEA and thus subject to penalties under Section 296 of the SEA in conjunction with Section 86 of the Penal Code.
As the three persons agreed to enter the settlement procedure, the Settlement Committee imposed fines on Choavalit, Yanyong and Ziriwat in the amount of 3,854,145 baht, 8,7,625 baht, and 15,861,919.29 baht, respectively. The fine amounts were based on the amount of the benefit they received or should have been received as a result of the above violations.