Bangkok, 14 May 2020 – SEC has imposed civil sanction on two offenders, namely (1) Mr. Kitti Thanakitamnuay for disclosing inside information related to Noble Development Public Company Limited (NOBLE) to other persons, and (2) Mr. Kongpat Jiramaneekul for purchasing NOBLE shares while knowing or possessing inside information. The offenders are thus subject to civil penalty and compensation for the benefits received from committing the offenses, as well as reimbursement of the investigative expenses to SEC, at the total amount of 15,952,104 baht. In addition, the two persons are prohibited from holding the positions of director or executive of a securities issuing company or a securities company within a specified period of time.
According to a referral from the Stock Exchange of Thailand (SET) and SEC’s further investigation, it was found that during the month of May 2018, Kitti knew or possessed the inside information related to the tender offer of NOBLE shares at 12.25 baht per share, which was higher than the market price. As director and executive of the company at the time, Kitti disclosed such insider information to Kongpat, his nephew-in-law, even though he knew or should have known that Kongpat could possibly use such information for purchasing NOBLE shares. Kongpat actually purchased 4,088,600 NOBLE shares during 4-11 June 2018 before the inside information was publicly disclosed on 12 June 2018. As a result, Kongpat benefited from the NOBLE share purchase at the amount of 7,043,960 baht.
Kitti’s disclosure of the inside information of NOBLE to Kongpat while knowing or possessing such inside information was deemed a violation of Section 242(2) in conjunction with Section 243(1), and liable to the penalties under Section 296 and Section 296/2 of the Securities and Exchange Act B.E. 2535 (1992) (SEA), as amended by the Securities and Exchange Act No. 5 B.E. 2559 (2016). Kongpat’s purchase of NOBLE shares while knowing or possessing the inside information given by Kitti was deemed a violation of Section 242(1) and liable to the penalties under Section 296 and Section 296/2 of the SEA.
The Civil Sanction Committee has resolved to instruct SEC to impose civil sanction whereby Kitti and Kongpat must pay a separate civil penalty, compensate for the benefits received from committing the offenses, and reimburse the investigative expenses to SEC, at the amounts of 653,795 baht and 15,298,309 baht, respectively. In addition, both Kitti and Kongpat are prohibited from holding the positions of director or executive at any securities issuing company and securities company for 12 months each. The banning period shall begin from the date when each offender signs the letter of consent to comply with the civil sanction.
If any of the offenders refuses to comply with the civil sanction imposed by the Civil Sanction Committee, SEC will submit the case for the public attorney to file a lawsuit with the Civil Court. The objectives of the lawsuit are to (1) impose the highest civil penalty as allowed by law, (2) impose a compensation for the benefits received from the relevant offenses, (3) impose a reimbursement of the investigative expenses, (4) ban the holding of director or executive position at any issuing company or securities company for twice the duration specified by the Civil Sanction Committee, and (5) prohibit securities trading on SET or securities trading center and entering into derivatives contracts on the Derivatives Exchange for the maximum duration as allowed by law.
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