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SEC fines BKI executive for disclosing inside information to support other persons? share purchases



Wednesday 16 March 2016 | No. 21 / 2016



Bangkok, March 16, 2016 ? The Criminal Fining Committee has imposed a fine of 500,000 baht on Chai Sophonpanich for disclosing inside information for other persons to purchase shares of Bangkok Insurance Public Company Limited (BKI).

Following a referral from the Stock Exchange of Thailand, the SEC?s further inspection has revealed that Chai, then chairman and chairman of the executive board of directors of BKI, proposed a dividend payment plan for BKI shareholders at the ratio of five existing shares to two dividend shares, on top of the normal dividend payment plan for the operating performance of 2013. This was material information that would have supported an upward trend of the BKI share price. Chai disclosed such inside information to other persons who purchased BKI shares during 24-25 February 2014 before the information became publicly known on 28 February 2014. Such action was deemed taking an unfair advantage of other people.

Chai?s misconduct was in violation of Section 241 and liable to the penalties under Section 296 of the Securities and Exchange Act of 1992. He was subject to a criminal fine penalty. Given that the benefit he had received was lower than the minimum fine of 500,000 baht the law requires, he was fined at such amount.

In addition, as Chai is a director of Bangkok Life Assurance PCL, which is a Limited Brokerage, Dealing and Underwriting (LBDU) licensee, he is also considered personnel in the capital market. As a result, his aforesaid misconduct has caused him to possess the prohibited characteristics of capital market personnel.* This deems him unfit to perform duties as a director of Bangkok Life Assurance PCL for a period of three years, starting from March 17, 2016, and prohibits him from performing duties of capital market personnel for any securities and derivative business operators throughout such same period.  

* Clause 4 and Clause 31(2) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014












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NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 21 / 2016 Wednesday 16 March 2016
SEC fines BKI executive for disclosing inside information to support other persons? share purchases


Bangkok, March 16, 2016 ? The Criminal Fining Committee has imposed a fine of 500,000 baht on Chai Sophonpanich for disclosing inside information for other persons to purchase shares of Bangkok Insurance Public Company Limited (BKI).

Following a referral from the Stock Exchange of Thailand, the SEC?s further inspection has revealed that Chai, then chairman and chairman of the executive board of directors of BKI, proposed a dividend payment plan for BKI shareholders at the ratio of five existing shares to two dividend shares, on top of the normal dividend payment plan for the operating performance of 2013. This was material information that would have supported an upward trend of the BKI share price. Chai disclosed such inside information to other persons who purchased BKI shares during 24-25 February 2014 before the information became publicly known on 28 February 2014. Such action was deemed taking an unfair advantage of other people.

Chai?s misconduct was in violation of Section 241 and liable to the penalties under Section 296 of the Securities and Exchange Act of 1992. He was subject to a criminal fine penalty. Given that the benefit he had received was lower than the minimum fine of 500,000 baht the law requires, he was fined at such amount.

In addition, as Chai is a director of Bangkok Life Assurance PCL, which is a Limited Brokerage, Dealing and Underwriting (LBDU) licensee, he is also considered personnel in the capital market. As a result, his aforesaid misconduct has caused him to possess the prohibited characteristics of capital market personnel.* This deems him unfit to perform duties as a director of Bangkok Life Assurance PCL for a period of three years, starting from March 17, 2016, and prohibits him from performing duties of capital market personnel for any securities and derivative business operators throughout such same period.  

* Clause 4 and Clause 31(2) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014