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  1. #1
    Thailand Expat tomcat's Avatar
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    Insider Trading Made Easy

    Thailand seeks to crack down on insider trading as backlash grows

    Leading investors boycott CP All as regulator calls for ‘more forceful’ regime

    By Michael Peel (FT)


    Thailand seeks to crack down on insider trading as backlash growsLeading investors boycott CP All as regulator calls for ‘more forceful’ regime.

    Thai executives face an insider trading crackdown amid a growing backlash over a high-profile scandal in the leading Southeast Asian emerging market.

    The head of the stock market regulator has called for stronger action on market manipulation after CP All, operator of the 7-Eleven convenience store franchise in Thailand, allowed three board members who were fined for the offence to keep their jobs.

    Leading investors are boycotting new purchases of shares in the company, part of the multinational Charoen Pokphand Group conglomerate, over its failure to go further than a formal reprimand of the trio.

    Rapee Sucharitakul, Securities and Exchange Commission secretary-general, said the regulator was examining ways to toughen the country’s regime for punishing insider traders.“It’s one of the things we are looking into — to make it much more forceful,” he told the Financial Times. Mr Rapee urged the adoption of existing plans to ban executives involved in insider trading from office. He also encouraged the military-led government to pass a law proposed 18 months ago that would raise maximum financial penalties on wrongdoers by 50 per cent.

    Thailand has fined just 42 individuals for insider trading and launched only seven police probes into the offence in the six years to 2015, according to the regulator’s own figures. Most wrongdoers at worst face paying back twice the amount of their illicit gain — and potentially much less if they settle their cases early.

    Concerns over insider trading have been crystallised by CP All’s decision last month to allow its three culpable directors to stay in their posts on the grounds that they did not mean to do anything wrong.

    An SEC settlement committee had in December levied fines totalling Bt33.3m ($1m) on six people including Korsak Chairasmisak, CP All vice-chairman, and fellow directors Piyawat Titasattavorakul and Pittaya Jearavisitkul, over purchases of shares in Siam Makro, the retailer, when CP All was in talks to take over the company in 2013.Mr Korsak, who accounted for more than 90 per cent of the fine, has acknowledged buying the shares but said he did not intend to commit insider trading.

    Thai financial institutions managing more than $170bn in funds retaliated last month with a pledge to stop buying new shares in CP All, which is still 42 per cent owned by companies of CP Group, the agribusiness, food and retail conglomerate.Mr Rapee said he was encouraged by the institutions’ stand, describing it as “a very good indication that investors no longer tolerate such attitudes”.

    But CP All shares have thrived since the investors announced their action, in what some observers see as a sign of relief that the fallout for the company was not worse.Mr Rapee also acknowledged there were concerns about the lack of transparency in the regulation of insider trading cases. The present law does not allow him to release important details about the individuals’ conduct and how much illicit profit they made.

    The chief regulator said he was not permitted even to name the members of the independent case settlement committee, which includes representatives of the police, central bank and finance ministry.CP All did not respond to a request for comment. It has previously said the fined directors had acted with “imprudence” and “limited understanding” of the rules.
    Majestically enthroned amid the vulgar herd

  2. #2
    Thailand Expat
    Buckaroo Banzai's Avatar
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    Quote Originally Posted by tomcat View Post
    allowed three board members who were fined for the offence to keep their jobs.
    If the fine is less than the amount profited, then why should the stop doing it?
    The fine is simply the cost of doing business.

  3. #3
    5 4 Knoll
    david44's Avatar
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    Quote Originally Posted by Buckaroo Banzai View Post
    he fine is simply the cost of doing business.
    YEP THAT'S WHY EXECUTION STOPS RECCIDIVISM AND DISCOURGES COPYCATS

    THESE FECKERS ARE UNTOUCHABLE LIKEBbLUEBULLSHIT DRINK HEIR IF I HAVE THE COLOR RIGHT?

  4. #4
    last farang standing
    Hugh Cow's Avatar
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    The only way would be to ban share trading in Thailand.

  5. #5
    Thailand Expat tomcat's Avatar
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    Quote Originally Posted by Hugh Cow View Post
    The only way would be to ban share trading in Thailand.
    ...or, indeed, economic activity of any sort...Thainess uber alles...

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