With the case referral from the Stock Exchange of Thailand (SET) and the SEC’s further investigation, it was found that the four offenders, namely (1) Mr. Win Udomrachtavanich, (2) Mr. Ratachai Teratanavat, (3) Mr. Vijchu Chantatab, and (4) Mrs. Shanya Pengpunpat had collusively manipulated share price and/or trading volume of the Market for Alternative Investment (mai)-listed TIGER between 24-29 October 2018 and on 13 November 2018 (five business days in total). 

According to the investigation, it was discovered that, at the time of such wrongful acts, the four offenders, holding positions and performing duties at the KTB Securities (Thailand) Public Company Limited (KTBST)*, i.e., Win, Executive Chairman, Ratachai, Co-CEO and Head of Investment Banking, and Vijchu, Head of Private Fund Management and a private fund manager, had collusively planned and conducted, with divided assignments, the manipulation of price or trading volume of TIGER shares, with the assistance of Shanya, Investment Consultant, Private Fund Management Department.

With reference to the investigation findings, the afore-mentioned offenders had planned and divided responsibilities for this purpose since the beginning of the TIGER share underwriting process (for which the KTBST acted as the financial advisor and lead underwriter of the TIGER Initial Public Offering (IPO)**). They had invited new clients to open private fund accounts without proper scrutiny of their financial potential through Know Your Customer (KYC) and Customer Due Diligence (CDD) processes. The allocation of TIGER shares, with supporting promotional campaigns, was also concentrated in the accounts of those private fund clients. On the first trading day of TIGER shares on the mai (24 October 2018), Wichu began sending trading orders of TIGER shares, using clients’ accounts in the manner that caused TIGER price or trading volume to be inconsistent with the normal market condition, with an intent to push the security prices up, during 24-29 October 2018 and on 13 November 2018, to the levels higher than the IPO price of 3.65 baht per share.

The acts of the offenders, which caused the price and/or volume of TIGER shares to be inconsistent with the normal market condition, misleading other investors that the securities were in great demand, are deemed a violation of Sections 244/3 (1) and (2) of the Securities and Exchange Act B.E. 2535 (SEA) in conjunction with Section 83 of the Penal Code and Section 315 of the SEA (as the case may be). Moreover, Vijchu’s acts in particular, are deemed failure to perform duties as a private fund manager with honesty and care to preserve the interests of the person who has authorized the management of the private fund, using knowledge and competence as a professional. He was then considered failing to comply with the provisions of the second and third paragraphs of Section 134 in conjunction with the first paragraph of Section 133 of the SEA.

Due to the fact that those four offenders are considered capital market business personnel with knowledge, expertise and credibility among general investors, their misconduct in this case is a serious offense, affecting the reliability of the capital market in a significant manner. Besides, in the offenses of certain offenders, the civil sanctions cannot be applied. The SEC, therefore, has filed a criminal complaint against those four offenders with the ECD for consideration of further legal actions.

The filing of a criminal complaint is just the commencement of the criminal proceedings, whereby the consideration of whether any person is guilty is subject to the inquiry official’s investigation, the public prosecutor’s prosecution, and the court’s adjudication, respectively. The SEC will follow up on the progress of the ongoing legal proceedings and fully collaborate with relevant agencies in the subsequent processes after the complaint filing to support law enforcement under the SEA.

__________________________

Remarks:

* The company’s name at the time of the wrongdoing, which was later changed to be Daol Securities (Thailand) Public Company Limited.

** The performance of duties as the financial advisor for TIGER IPO is the first deal after the SEC 2-year suspension (30 June 2016 - 29 June 2018) of the approval of the KTBST as a financial advisor.