Why are insider traders given a free pass?
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I fully support the government’s policy of not investing in any company involved in insider trading, since such involvement reflects poorly on corporate governance.
CP All’s board refuses to punish its top executives found guilty of insider trading, namely executive chairman Korsak Chairamisak, vice chairmen Piyawat Titasattavorakul and Pittaya Jearavisitkul, and True group counsel Atheuck Asvanund.
These insiders had information on 7-Eleven’s negotiations to buy out Siam Makro shares. By planning to buy Makro shares ahead of the buy-out announcement, they would not be motivated to push for the lowest price possible, since a higher price would mean more for them and less for 7-Eleven shareholders.
The guilty parties claim they had a limited understanding of Securities and Exchange Commission rules and had “no intention” of violating them, yet one of the co-conspirators was True’s leading lawyer.
Thailand’s Association of Investment Management Companies has joined international and local retail investors in calling for action to be taken against the wrongdoers.
In other countries, insider trading is punishable by jail. I join Khun Bandid Nijathaworn, president of the Thai Institute of Directors, in expressing disappointment with the CP All directors’ resolution to not discipline the four inside traders.
If biting the hand of the shareholders who fed them is not severely punished by the board, investors should think twice before trading in the company.
Burin Kantabutra
