Brokers' association wants stricter rules for share transfers

[Lite Beer]

CHUWONG SAETANG'S SHARES
Brokers' association wants stricter rules for share transfers
THE NATION

An AEC Securities official presents documents related to the share transactions of Srithara Promma after Police Spokesman Lt-General Prawut Thavornsiri led a team to search the company

BANGKOK: -- AN ASSOCIATION of brokers is seeking stricter regulations related to the transfer of stocks through securities firms in order to prevent fraud.

The call came after fraud was suspected in the transfer of about Bt300 million worth of late construction tycoon Chuwong Saetang's shares. The billionaire was killed in a car crash under suspicious circumstances in late June.

His family has been pushing for closer investigation into the businessman's death, which came just days after he allegedly transferred the shares to two women, who claim they were intimately involved with him.

Pattera Dilokrungthirapop, chairwoman of the Association of Thai Securities Companies, told Nation TV yesterday that the brokers' group wanted to see some changes to the current regulations.

She said that only customers with legitimate accounts should be allowed to transfer their shares through brokerage companies, and the transfer of shares to anybody other than the shareholder's legal spouse or child should be prohibited. Evidence of family relationships should also be required along with the request for share transfers, she said.

Pattera acknowledged that existing regulations were already strict, with every transfer signature being examined by two brokerage officials and the transfer being confirmed on telephone with the account holder. However, judging from the suspicions surrounding Chuwong's case, "there are still risks that could lead to problems", she warned.

She also called for tougher examination by the brokerage firms' internal auditors, particularly in cases where marketing officials in these companies get large amounts of shares transferred to their accounts.

One of the women who obtained Chuwong's shares works for a brokerage company.

Meanwhile, police in the Crime Suppression Division (CSD) yesterday conducted a search at the office of AEC Securities, inside Athenee Tower on Wireless Road in Bangkok, as part of the investigation into the Chuwong share transfer. The CSD officers focused their attention on documents involving the transfer of shares worth Bt40 million to one of the women, and it took them about an hour to complete the search.

Royal Thai Police spokesman Lt-General Prawut Thavornsiri, who accompanied the CSD team, said they had taken all documents and audio electronic files related to Chuwong for further examination.

"We need time to examine these documents carefully," he said.

Prawut said it was initially found that there was some irregularity in the share transfer, but it could not be confirmed yet if it had anything to do with Chuwong's death.

In a related development, the Securities and Exchange Commission is also investigating this case and gathering information from the securities firm in question, according to SEC assistant secretary-general Paralee Sukonthaman.

"The investigation must be careful and comprehensive. Much progress has been made. We are coordinating with the police, but it will take about three months before we can disclose findings," she said.

There have been calls for the stock market's regulating body to look into this case seriously.

Source: http://www.nationmultimedia.com/national/Brokers-association-wants-stricter-rules-for-share-30266194.html

-- The Nation 2015-08-08