Bangkok: The Securities and Exchange Commission (SEC) has imposed civil penalties on "Top-Itthipat" and his associates, a total of five individuals, for insider trading in Tao Kae Noi (TKN) shares, with a fine of 16.39 million baht. The penalties include a ban on serving as directors or executives.
According to Thai News Agency, the SEC has imposed civil penalties on Itthipat and Natchachaphong, along with five others, for purchasing shares in Tao Kae Noi TKN using inside information and aiding in the commission of the crime. The SEC has ordered the five offenders to pay a fine of over 16.39 million baht and banned them from serving as directors or executives.
The SEC has disclosed the prosecution with civil penalty measures against five individuals: (1) Mr. Itthipat Peeradechaphan, (2) Mr. Natchaphong Peeradechaphan, (3) Ms. Panida Wiriyakitnukul, (4) Ms. Thitirat Phanuwatwanich, and (5) Mr. Chakraphan Chatpricha. These individuals were involved in purchasing shares of Tao Kae Noi Food and Marketing Public Company Limited (TKN) using insider information.
Following the SEC's receipt of information from the Stock Exchange of Thailand (SET) in March 2023, further investigation led to findings that between August 5 and November 9, 2022, the five individuals engaged in insider trading. They utilized non-public information, including TKN's Q3 2022 operating results, which revealed a significant net profit increase and the announcement of a special interim dividend, impacting TKN's share price positively.
Mr. Itthipat, the CEO and Director, and Mr. Natchaphong, the Managing Director, were found to have purchased TKN shares using insider information. Mr. Itthipat made these transactions through Ms. Panida's account, while Mr. Natchachaphong used accounts of Ms. Thitirat and Mr. Chakraphan, prior to the public disclosure of information on November 10, 2022.
The actions of Mr. Itthipat and Mr. Natchachaphong are offenses under specific sections of the Securities and Exchange Act B.E. 2535. The involvement of Ms. Panida, Ms. Thitirat, and Mr. Chakraphan, who permitted the use of their accounts, constitutes being accomplices in insider trading.
The Civil Penalty Consideration Committee (CPSC) has resolved to enforce civil penalties, including fines, compensation, and reimbursement of SEC investigation expenses. Additionally, bans on serving as directors or executives have been imposed for varying durations.
(1) Mr. Itthipat is ordered to pay a total of 11,601,063 baht and is banned from being a director or executive for 20 months.
(2) Mr. Natchachaphong must pay 2,916,030 baht and faces a 14-month prohibition.
(3) Ms. Panida has a total obligation of 625,197 baht and a 13-month prohibition.
(4) Ms. Thitirat and Mr. Chakraphan each face a fine of 625,197 baht and a 9-month ban.
The prohibition period will commence once the offenders sign the memorandum of consent to comply with SEC measures. Non-compliance may lead to a request for the public prosecutor to file a lawsuit in the Civil Court for penalties at the highest rate prescribed by law.