Crackdown on Illegal Securities Trading Increases in Thailand

snoop1130 · August 27

Thai stock market regulators are working harder in collaboration with the Anti-Money Laundering Office (AMLO) to fight illegal securities trading. This action will hopefully break down illicit financial activities and increase people’s trust in Thailand's capital market.

A memorandum of understanding (MoU) was signed on August 26 between the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET). This is a key move towards achieving their goal. The agreement is meant to strengthen their combined efforts under the Securities and Exchange Act and the Anti-Money Laundering Act.

The MoU aims to tear down criminal financial operations, particularly those linked to securities trading. The SEC chairman, Wisit Wisitsora-at, stated that these activities harm not just investors but also have wider consequences on the country's economy.

Any future violations in securities will be promptly dealt with by government officials, ensured SET chairman Kitipong Urapeepatanapong.

The agreement's goal is to make working processes quicker and more effective. It will do this by improving the transition procedures between regulators and law enforcement agencies.

SET president Pakorn Peetathawatchai noted that cooperation between justice system agencies is vital to deterring and taking fast legal action against wrongdoers.

The efforts are all a part of rebuilding and strengthening confidence in the Thai capital market, Peetathawatchai pointed out.

The agreement also ties with the SEC and SET's coordinated activities in the case of Warrix Sport. The apparel company found out that 15 million shares are missing despite no default in loan repayment.

Regulators have been speaking with Warrix executives since last week. However, they cannot take any action as the shares were deposited with a company beyond the SEC's supervision.

Last week, Wisan Wanasuksrisakul, Warrix’s CEO, informed the SET that Warrix sold approximately 14,942,530 shares to Hi-Tech Apparel, through the Thailand Securities Depository Co.

He cancelled the loan agreement and initiated a legal lawsuit to find the missing shares and have the custodian return all deposited shares. He has also requested a court order to seize the remaining shares in the custodian’s possession and also prevent the custodian and its representative from selling or transferring these shares.

File photo for reference only

-- 2024-08-27

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