Data used ahead of official disclosure
More listed firms are using insider information to boost their shares prices than in the past, according to the Securities and Exchange Commission. When caught, the management of those companies say they were unaware that doing so was in violation of Article 57 of the Securities Act.
Such violations are on an upward trend as companies try to raise capital in on the Stock Exchange of Thaland and the Market for Alternative Investment, said Vasant Thienhom, deputy secretary-general of the SEC.
The management of some listed firms use information they have obtained a few days in advance of an official disclosure to gain an unfair advantage over other investors and stock traders, in violation of Article 57.
Securities brokerages and investors expect recent proposals by regulators will help cool down trading in highly speculative stocks without affecting investment sentiment. The SET and the Association of Securities Companies are proposing measures to curb speculation and manipulation of red-hot stocks. Such measures should curb irregular movements of highly speculative stocks that had recently been of increasing concern among regulators and investors. Meanwhile, Voravan Tarapoom, the newly appointed chairwoman of the Federation of Thai Capital Market Organisations (Fetco) plans to proceed with the pending work of the previous chairman, Paiboon Nalinthrangkurn, and has announced seven objectives of her own.
The first of these is to educate the public about the role of the Thai capital market. The second is to educate Thais about the benefits of personal savings and investments in the capital market.
Third, Fetco will serve the capital needs of listed firms and small and medium-sized enterprises. The fourth objective is to support the capabilities of those who stand to lose or gain in the Thai capital market.
Voravan’s fifth aim is to restructure and improve the payment system of the Thai capital market.
The sixth priority is the skills or capability of developing personnel in the Thai capital market.
Her final goal is to promote good corporate governance and deter corrupt practices.
Paiboon said he wanted his successor to pursue the reform of the Thai capital market, to boost its efficiency. He will use his role as a member of the National Legislative Assembly to help develop the potential of the capital market.