Sorat Asawaprapha, a former independent director of Jasmine International (JAS), has been fined 5.56 million baht for using inside information to trade futures contracts, the Securities and Exchange Commission (SEC) said yesterday.
Mr Sorat is another high-profile catch for the SEC, which has tightened inspections throughout the year after insider trading by CP All senior executives was unearthed last December.
The watchdog received a report from the Stock Exchange of Thailand about suspicious activities by Mr Sorat, and an investigation was launched.
The SEC said Mr Sorat, then JAS's independent director, received an invitation letter to a Jan 25 meeting of the company's board stating that a dividend payment to shareholders would be discussed.
Mr Sorat used the information to make a purchasing order of 10,000 contracts of JASH16 futures before the dividend payment was announced to the public, the SEC said.
Once news of the dividend payment was released, Mr Sorat sold the 10,000 contracts for a big gain from higher prices of JASH16, the regulator said.
The SEC also alleged that Mr Sorat committed insider trading after learning that JAS's board was to consider a share buyback option on March 7, with the offering price exceeding market value.
He then bought 8,000 contracts of JASH16 on March 2 and sold them for a big gain on March 7, when the share price spiked after the offering price was revealed to the public, the SEC said.
Mr Sorat also allegedly failed to comply with the SEC's rule that as a director of a company with a vested interest therein, he must, before any meeting requiring his vote for a resolution, disclose certain activities involving the company's interests and stakeholders.
The SEC's fine committee agreed to fine him 5.56 million baht for violating the Securities and Stock Exchange Act. He is also prohibited from being a director, executive or member of the board at any listed company for two years from Dec 2.
Furthermore, if he holds any positions at any listed companies, he must resign immediately.