Jasmine boss likely be disqualified
published : 16 Sep 2019 at 20:43
writer: Online Reporters
Pete Bodharamik, CEO of Jasmine International Plc (JAS), will likely be disqualified as director and executive after the securities regulator took civil action against him for insider trading.
The Securities and Exchange Commission (SEC) said in a statement on Monday evening it would fine Mr Pete 32.6 million baht and demand a repayment equivalent to the 26.1-million-baht gains he had made from the transaction, totalling 58.8 million baht.
Krirkkrai Traibanyatkul, who controls 14.9% of Jasmine Telecom Systems (JTS), was also fined 333,333 baht.
The case involves the trading of JTS shares by the pair from Sept 29 to Oct 12, 2016. Both JAS and JTS, its 32.8%-owned subsidiary, are listed on the Stock Exchange of Thailand.
The regulator said Mr Pete and Mr Krirkkrai, using the latter’s share trading account, bought JTS shares before its 2016 third-quarter operating results were disclosed.
JTS later showed a profit of 21.4 million baht, a turnaround from losses it had reported since 2014. The information was therefore crucial to the stock prices, read the statement.
JTS was awarded a contract from Triple T Broadband Plc (TTTBB), which Mr Pete was also its CEO. TTTBB is 99% owned by JAS through its wholly-owned Acumen Co Ltd.
Mr Pete was also CEO and director of JAS who held sway on the policy of granting contracts to subsidiaries and affiliated companies.
“Mr Pete and Mr Krirkrai had known significant information that could affect JTS share prices. This was insider trading, which violates Section 241 of the 1992 Securities and Stock Exchange Act,” read the statement.
As a result of the civil action, there is ground to question the credibility of a person as director or executive of a listed company under an SEC announcement.
“Mr Pete will be relieved of duty as director and executive of the company when the SEC issues a letter detailing his lack of credibility, which it is preparing.”
In Mr Krirkrai’s case, the SEC will consider his suitability when he becomes a director and executive of a listed company.
Mr Pete is the largest shareholder of JAS, with 56%. JAS operates the broadband business under the 3BB brand, telecom network and services, system integration and other businesses.