Wider scope for SEC Act
The Securities and Exchange Commission will broaden the scope of the Securities and Exchange Act to cover outsiders using inside information for illegal trading as well as to accommodate transactions linked with foreign capital markets.
The SEC plans to finish the amendment this year.
Currently punishment for insider trading is limited to insiders related to a deal or transaction.
The rewrite will define a new composition of unlawful dissemination of false or misleading information to cover as many as types of actions as possible.
It will include actions leading to the unusual movement of the market or share prices through false or misleading impressions and price positioning. Those committing the latter crime will be subject to stronger penalties.
The amendment is aimed at promoting higher investor confidence.
It will give the SEC more power to enforce laws on wrongdoings in foreign countries that affect the Thai stock market.
The SEC is holding public hearings on the plan until Sunday.
The SEC said many research studies indicate that its enforcement of the Act is not effective enough. The Act uses only criminal procedures, which require proof beyond all doubt. This is not suitable for securities-related offences, as most documents, which can be used as evidence, are in the form of electronic data, which can be easily deleted.
