Mono Next Plc (MONO) is considering legal action against the Stock Exchange of Thailand (SET), saying the bourse's announcement on Dec 3 about irregular trading of the digital TV operator's shares caused unnecessary panic among investors and affected its share price.
Navamin Prasopnet, acting chief executive of the media and content firm, clarified that the changes in the trading conditions of its ordinary shares are based on external factors and circumstances beyond the company's control.
MONO considers the SET's actions to be excessive and lacking appropriate consideration of their impact on both investors and the company, he said.
The company is considering exercising its legal rights regarding actions that caused damage to the company and its shareholders in order to protect their interests, Mr Navamin reported via the SET website yesterday.
The SET on Tuesday announced that MONO is subject to Level 1 trading control measures from Nov 27 to Dec 17, 2024, as the bourse identified certain groups of individuals who may reasonably be believed to have acted in concert, engaging in substantial daily transactions of the shares.
Mr Navamin said the warning caused unnecessary panic and disproportionate harm, adversely affecting the company's stock price and investor confidence in the company and its securities, without sufficient legal justification.
"Should the SET possess clear evidence indicating violations of applicable laws, it is obligated to report such incidents to the Securities and Exchange Commission for further legal action," he said.
Such warnings require a higher degree of caution because they may have a widespread impact on investors, said Mr Navamin.
According to the SET's statement, MONO's share price and trading value soared daily for four business days until Dec 2, rising 31.5% since the trading control measures took effect, without any new material information during the period.
The high turnover may indicate higher speculation, as the daily turnover percentage increased continuously from an average of 0.75% before the measures to 3.04%, noted the bourse.
The SET identified a group of people trading roughly 15% of the total trading value each day, contributing to the upward price movement.
The bourse said if the trading conditions of MONO securities are still abnormal without supporting fundamental factors, the stock will be upgraded from Level 1 control measures to Level 2, in accordance with market surveillance protocols.
Level 1 trading control measures prohibit credit limit calculation and requires 100% cash payment for trading of such shares.
Level 2 measures comprise the prohibition of net settlement, exclusion from credit limit calculation, a cash balance requirement and use of the auction-only trade method.