BCP stock seizure worth 6 billion Baht has no impact on free float, SET confirms

The Stock Exchange of Thailand (SET) clarifies the case of AMLO's seizure of shares from Bangchak Corporation (BCP) valued at more than 6 billion Baht, stating that it will not affect the free float. The SET is accelerating its investigation in all aspects while signaling transparency to maintain investor confidence. The SET continues to monitor over 600,000 trades per day closely.

This case follows the announcement from the Anti-Money Laundering Office (AMLO) about its operations involving the seizure of assets connected to transnational criminal organizations, specifically scammers. Among the seized assets, the significant one is shares of Bangchak Corporation Public Company Limited (BCP), worth approximately 6 billion Baht.

Asadej Kongsiri, President of the Stock Exchange of Thailand (SET), revealed that the government’s actions are seen as a positive move to protect the public and investors, a stance that the SET has consistently supported. He added that while this situation may negatively affect the image of the capital market, the SET has promptly informed the government that it is ready to support all actions. At the same time, the SET is prepared to investigate all aspects based on the available information.

The SET monitors over 500,000–600,000 transactions daily, ensuring that the trading activities are always scrutinized. The SET, along with the Securities and Exchange Commission (SEC) and the Bank of Thailand, has regulations in place to control and oversee the trading of securities.

Currently, there are more than 800 listed companies in the stock market, and while only 2-3 cases have occurred, it impacts the overall market perception. Therefore, the SET expects the government to provide quick clarity to ensure confidence among investors. As for the additional 6 securities currently under investigation by AMLO, no agency has requested information from the SET at this point.

Regarding concerns over BCP stocks and free float, Asadej explained that it is essential to look into which portion of the 6 billion Baht worth of shares has been seized. However, it is understood that the BCP free float in the seized shares is unlikely to be significantly impacted, as these stocks have not been actively traded daily and are mostly held. It is not anticipated that stock accumulation will occur. Measures to prevent this are already in place, and the listed company has previously announced its efforts, including the formation of committees to protect the broader investor community.

However, Asadej emphasized that if any forbidden transactions related to the securities were to occur, the SET would immediately inquire about them. If any suspicious behavior is detected, the SET will act according to its existing regulations, as it monitors such activities continuously. As of now, no such issues have been found regarding BCP.

SEC’s Actions with AMLO to Combat Scammer Networks and Eliminate Crime:

• The SEC and AMLO held a joint meeting to coordinate efforts in tracking and seizing assets from technology crime networks.
• They discussed pushing for improvements in laws and regulations to enhance tools for tracking financial transactions and identifying ultimate beneficiaries.
• The focus is also on clarifying Know Your Customer (KYC) and Customer Due Diligence (CDD) standards and improving the efficient exchange of information between the two agencies.

Pornanong Busaratrakul, Secretary-General The Securities and Exchange Commission (SEC), along with Waratchya Srimachand, Deputy Secretary-General, Thawatchai Pittayasophon, Deputy Secretary-General, and Sucha Boonyanate, Assistant Secretary-General, participated in discussions with Thepsu Bawornchotdara, Secretary-General of AMLO, Wittaya Neetitham, assistant secretary- general, and AMLO executives.

The aim was to coordinate efforts to track and seize assets from technology crime networks, with AMLO providing initial data as requested by the SEC.

Additionally, they discussed pushing for rapid legal and regulatory improvements to enhance tools for monitoring transactions and identifying ultimate beneficiaries, especially through complex business structures. They also aimed to clarify standards for KYC/CDD to assist the SEC in monitoring corporate takeover violations and AMLO in detecting money laundering offenses. The ultimate goal is to facilitate fast and efficient data exchange between the two agencies.