www.sec.or.th

Appointment of SEC Secretary-General

The Cabinet on October 4 appointed

Mr. Vorapol Socatiyanurak as SEC

Secretary-General, succeeding

Mr. Thirachai Phuvanatnaranubala,

effective from October 17, 2011.

Mr. Vorapol obtained a bachelor’s degree

in Science from Chulalongkorn University, Thailand, and MBAs

from the National Institute of Development Administration (NIDA),

Thailand and Syracuse University, USA. He also has a master’s

and a doctorate degree in Finance from the Wharton School,

University of Pennsylvania, USA.

Prior to the appointment, he was executive directors of NIDA

Center for Enhancing Competitiveness and University Business

Incubators.

He also held positions in various public agencies related to economy,

financial and capital markets; for instance, Vice Chairman of the

National Economic and Social Advisory Council, Chairman of the

Advisory Committee to the Council of Ministers on the Negotiation

of the Thai-US Free Trade Area Agreement, expert member of

the Committee for the Consideration of Government Bond Issuance

of the Ministry of Finance, members of the Ad-hoc Committee for

the Consideration of the Draft Bank of Thailand Act and the Ad-hoc

Committee for the Consideration of the Draft Securities and

Exchange Act, the National Legislative Assembly, and expert

members of the SEC Accounting and Corporate Governance

Steering Group and the Takeovers Sub-committee.

Securities and Exchange Commission, Thailand Quarterly Newsletter Issue No.30 (October 2011)

International Updates

ASEAN Capital Markets Integration

In September, the SEC hosted the 15th ASEAN Capital Markets Forum

(ACMF) Meeting in Bangkok. The second meeting of the year was the

venue for chairpersons from ASEAN securities regulators to discuss

policy issues and key initiatives toward an integrated capital market

by 2015 as indicated in the ASEAN Economic Community Blueprint.

The highlight was the joint achievement of Malaysia, Singapore and

Thailand in harmonizing the ASEAN equity and plain debt securities

disclosure standards. This is another critical step following the 2009

announcement on the adoption of the ASEAN Disclosure Standards

and Plus which facilitate fund raising activities for the issuers. The

success also brought the ACMF closer to the creation of a single

prospectus framework in ASEAN.

Other streams of work also progress according to plan including

(1) the facilitation of cross-border offering of plain debt securities and

mutual funds to non-retail investors by mid 2012 and to the general

public under the mutual recognition regime by the year’s end, (2) the

framework to expedite the reviewing process for dual listing, and

(3) the development of the methodology to rank corporate governance

practices of ASEAN PLCs. The ranking, to be conducted by an

independent group of CG experts, is expected to start in 2012 and

contribute to the overall plan to establish the ASEAN brand in

the global capital market.

ACMF WG-DREM Meeting The SEC hosted the inaugural meeting of the Working Group on Dispute

Resolution and Enforcement Mechanism (WG-DREM) – a forum for ACMF

and legal experts from ASEAN Ministries of Justice (MOJ) to discuss

potential mechanisms for better protecting investors engaging in

cross-border investment transactions.

Headed by Mr. Wisit Wisitsora-at, Director-General of the Legal Execution Department, the Thai Ministry of Justice, the WG-DREM holds regular meetings and reports work progress to the ASEAN Finance Ministers through the ACMF.

For more information, please visit the ACMF website at www.theacmf.org.

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www.sec.or.th

IFIAR Meeting

The SEC, as a member of the International Forum of Independent

Audit Regulators (IFIAR) since September 2010, hosted the 10th

IFIAR Plenary Meeting during September 26-28 in Bangkok. More

than 100 participants from 30 independent audit regulators came

to share their views and experiences pertaining to audit market

environment, global audit regulatory developments, and audit

regulatory activities as well as to enhance collaboration on

regulatory activities and matters related to audit profession.

The SEC’s active participation in global audit regulatory developments

would enhance investor confidence on financial reporting and

further strengthen the effectiveness and robustness of the audit

regulatory environment in Thailand. This would also help to increase

international recognition in terms of the SEC’s independence and

Thailand’s internationally accepted audit oversight system.

For more information about IFIAR, please visit https:www.ifiar.org.

ASEAN Audit Regulators Working Group

The SEC hosted the 3rd ASEAN Audit Regulators Working Group

Meeting in concurrent with the IFIAR Plenary Meeting on

September 29. The topics of discussion were common audit

inspection findings and ways to promote initiatives for audit

quality improvement.

Established in November 2010 under the collaboration of the SEC,

the Malaysia Audit Oversight Board, and the Singapore Accounting

and Corporate Regulatory Authority, the Working Group aims to

enhance collaborative efforts among audit regulators to promote

audit quality among the ASEAN countries, exchange technical

training development, address the challenges to audit oversight in

the global economy, and bring about collective opinion of ASEAN

countries from both regulators and practitioners in the

international arena.

International Updates (cont’d)

Anti-Corruption Measures In a concerted effort to move Thailand up the clean scale, the SEC

and market related parties have initiated measures for using the

capital market as an anti-corruption mechanism. The country has

scored lower than 5 on the scale of 1 (highly corrupted) to 10 (very

clean) based on the Worldwide Corruption Perceptions Index (CPI)

published by the Transparency International.

One of the first measures is to support the private sector’s creation

of the Coalition against Corruption, which includes listed companies’

establishment of anti-corruption policy and code of conduct. Another

initiative to tackle corruption is in the form of corporate social

responsibility (CSR) with the drafting of the “Guidelines for Social

Responsibility” and the “Guidelines for CSR Report” being underway

and expected to be completed by the end of this year in time for

the official Year of CSR Implementation and Report in 2012 and the

launch of CSR Report Dissemination and Assessment in 2013.

Companies complying with the Guidelines for CSR Report will be

endorsed by the SEC and the SET.

In addition, earlier this year, the “Anti-Corruption Network” was

launched to create social awareness of the impacts of corruption

and to unite efforts in combating and suppressing corruption.

A member of the network, the SEC has actively supported

anti-corruption activities to urge listed companies’ participation

in the mission.

The SEC management

and staff joined the

“Anti-Corruption Network

Walk” on September 25

to stimulate public

awareness and fight

against corruption.

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Regulatory Updates

The SEC has reviewed its regulatory regime to maintain the standards

of financial markets by increasing fairness and flexibility for the private

sector’s business undertaking and enhancing investor protection.

Revisions of rules and regulations in Q3/2011 are as follows:

Derivatives Dealing The SEC has expanded the scope of derivatives dealing business.

Starting from September 16, 2011, licensees - previously permitted

to provide services exclusively for institutional investors - are allowed

to enter into over-the-counter plain vanilla derivatives transactions

with juristic persons for hedging purpose only.

The SEC, with the Cabinet’s approval, has prescribed 14 additional

goods and variables under the Derivatives Act B.E. 2546 (2003).

Associated regulations are therefore revised to lessen business

operators’ burdens and provide alternative channels for better

managing risks related to derivatives transactions. Earlier, commercial

banks were allowed to provide over-the-counter derivatives transactions

for clients, partially non-institutional investors, for hedging purpose.

Acquisition or Disposal of Securities The SEC has revised the rules on reporting of acquisition or disposal

of securities to ease reporting burdens and provide more information

to investors. Details are as follows:

(1) Every 5 percent trigger point report requirement applies

only to listed securities on the Stock Exchange of Thailand (SET);

(2) Compulsory submission of a hardcopy of report to the SET

is lifted; only the online report via the SET electronic system is still

required;

(3) The following cases or persons are exempted from filing of

every 5 percent trigger point report:

- borrowers and lenders in securities borrowing and

lending (SBL) transactions and collateral placement for SBL

transactions;

- acquisition of right offerings;

- Thai NVDR Co., Ltd. and Siam DR Co., Ltd. (SIAMDR);

(4) Scope of every 5 percent trigger point report requirement

has been extended to cover financial instruments issued by others

that entitle holders to convert or demand delivery of securities

issued by listed companies, e.g., derivatives warrants;

(5) Any person having an increase or decrease in number of

related juristic person* or concerted party*, which results in every

5 percent increase or decrease of securities holding in a listed

company, must file with the SEC a report of changes in securities

holding in the group.

The revised regulation became effective on September 23, 2011.

Notes: *Related juristic person refers to (i) a juristic person that is a shareholder

of the person with the duty to file every 5 percent trigger point report or (ii) a

juristic person in which the person with such duty is a shareholder, providing

that shareholding by or in the juristic person, as the case may be, exceeds

30 percent of the total number of the voting rights (More information on

Section 258 of the Securities and Exchange Act).

**Concerted party refers to a person having the intention to exercise

voting rights in the same direction or permit other persons to exercise such rights

with a view to jointly control voting rights or business, providing that such person

has a specific relationship or behavior as prescribed by the CMSB. (More information

in the Notification of the Capital Market Supervisory Board No. TorChor. 7/2552).

International Updates (cont’d)

IOSCO Visit SEC senior executives, led by Mr. Pravej Ongartsittigul,

Mrs. Tipsuda Thavaramara and Mrs. Praoporn Senanarong,

welcomed Mr. Greg Tanzer, Secretary-General of the International

Organization of Securities Commissions (IOSCO), on his visit to

the SEC Office in September. On this occasion, he presented an

overview of current issues for securities regulation covering

lessons from the global financial crisis, IOSCO’s current technical

work, and future implications for securities supervision to the SEC

management and staff.

Debt Securities Underwriting To boost liquidity in the secondary market, the SEC has now

allowed debt securities underwriters, co-underwriters, parent

companies and subsidiaries (“group”) to subscribe debt securities

under their underwriting services under the specified conditions,

such as:

The allocations to underwriters and their group must not

exceed the average allocation to institutional investors

involved in book building process;

Underwriters’ bidding price in book building process must

be non-competitive;

Such subscriptions and conditions must be disclosed in the

prospectus; and

They must comply with the preventive measures on conflicts

of interest while performing as financial advisor and managing

portfolio investment.

The revised regulation became effective on September 16, 2011.

Tender Offer Price The SEC has revised tender offer regulation to ensure fair tender

offer price and fair exit for investors. If a tender offer is not filed

timely, the offer price must not be lower than the higher price

between (1) the highest price of the acquired securities during

90 days prior to the due date with the duty to file a tender offer

plus financial costs arising from such delayed tender offer filing,

and (2) an average weighted market price of such securities

during five business days prior to the filing of such tender offer.

The revised regulation became effective on September 23, 2011.

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Provident Fund Growth - Thailand’s provident fund industry has shown a

continuous growth. In the first half of 2011, the total NAV was

595,228 million baht (3.8 percent rise over year-end 2010)

with 10,806 employers setting up funds (8.3 percent rise over

year-end 2010) with a total of 2.2 million members (3.7 percent

rise over year-end 2010). Since the revision on the Provident

Fund Act in 2008, 2,189 members who reached retirement age

or left their career for other reasons have requested to keep

their money in the system worth a total of 3,013 million baht

(20.9 percent surge over year-end 2010). This is a positive sign

that members are giving a higher priority to retirement savings

through the PVD system.

In addition, the SEC has continually supported companies in setting

up provident funds with employee’s choice and encouraged fund

members to choose investment policies suitable for their risk

profiles. In the first half of 2011, there were 86 funds offering

different investment policies (14.7 percent rise over year-end 2010),

while 2,465 employers provided employee’s choice program

(39.7 percent increase over year-end 2010).

Investment - The SEC has revised provident fund rules in line

with international pension fund standards to support provident

funds in providing employee’s choice while better serving the

needs of fund members and preventing them from investment

risks on their retirement savings. Matters concerning fund

members are:

(1) Suitability test: It is imperative that fund members

understand the investment policies they choose, particularly for

investment in high risk investment policy (investing in securities

that are not bank deposits and debt instruments without currency

exchange) higher than 50 percent of one’s investment portfolio.

In case of employee’s choice where fund members wish to invest

in high risk investment policy, the management company must

run a suitability test and provide suitable advice according to each

member’s risk profile;

(2) Alternative investment (AI): To increase investment

flexibility by providing more alternatives with risk diversification

in line with international pension fund standards, the SEC has

reclassified asset classes by adding alternative investment (AI)

class. This will allow provident funds to invest in more products,

such as commodity funds, infrastructure funds, or other assets,

in the future, provided that investment in all AI products must

not exceed 15 percent of the NAV or each investment policy as

the case may be, etc.

The revised regulation will take effect on January 1, 2012.

Asset Management Updates

Mutual Fund Prospectus – The SEC has revised the format of mutual fund

prospectus to comprise three sections: (1) key information section:

a clear, concise and comprehensive summary prepared in a standard

format to allow easy comparison of funds. The prospectus and unit

subscription forms must be distributed to all investors; (2) detailed

information section: clear details of fund in Q&A format, available

at the point of sale or distributed to those interested in investing

in the fund; and (3) certification of information: confirmation made

by asset management company that such disclosed information

is true, correct, and not misleading.

The revised regulation will take effect by the end of this year.

Investment - The SEC has revised regulations on diversification

of fund investment to allow reduction of protected deposit and

alternative investment in sukuk and Islamic deposit.

The Deposit Protection Agency’s gradual reduction of protected

deposit to 50 million baht on August 11, 2011 and 1 million baht

on August 11, 2012 may have impact on mutual funds, private

funds, and provident funds investing in deposits of financial

institutions. To protect investors, the SEC has therefore revised

company limit for fund investment in deposits including other

instruments issued by and transactions with financial institutions

by taking into account credit rating of instruments or financial

institutions. This will allow the funds to diversify investment risk

relatively to quality of such instruments or financial institutions.

As such, they can invest not exceeding 5 percent of the net asset

value in deposits, instruments or transactions with any particular

financial institution with non-investment grade or no credit rating.

Such 5 percent of the NAV, when combined with other assets with

non-investment grade or no credit rating, must not exceed 15 percent

of the NAV.

In addition, the funds will be provided with investment alternatives

in sukuk and Islamic deposits. Investment limit in sukuk and Islamic

deposits will be similar to that in debt instruments and deposits of

financial institutions. Prior to investment decision-making, management

companies must prudently consider risks associated with investment

and disclose such risks in the prospectuses.

The revised regulations became effective on August 1, 2011.

Product Development

Oil Futures In August, the SEC approved contract specification of oil futures to be traded on the Thailand Futures Exchange (TFEX) starting from

October 17, 2011. The reference price is based on Brent crude oil price in London market. An important commodity product with high

volatility but low correlation with stock prices, oil futures is an alternative investment and risk diversification tool for investors while

helping entrepreneurs to manage their energy related cost of the manufacturing or production process.

Oil futures also joins the night session trading of precious metal derivatives (19.30 - 22.30 hrs.). According to the Futures Industry Club

(FI Club)’s standards of business conduct, initial margin rate of oil futures for retail clients is 26,600 baht per contract, and maintenance

margin 18,620 baht per contract.

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Dialogue and Activities with Industry Liberalization and Capital Market Development

By Mrs. Tipsuda Thavaramara

SEC Senior Assistant Secretary-General

Published in The Nation newspaper

September 7, 2011

In the past five years, the SEC has clearly communicated its policy

of progressive liberalization in several aspects, from pricing (fully

negotiated brokerage commissions from 2012) to entry (no cap

on the number of securities licenses from 2012), to products

(allowing new types of securities to increase investor choice), to

investment abroad (which is now permitted up to a ceiling, and

later will include foreign offering in the Thai market). The aim is

to give investors more choices as well as to urge Thai securities

firms to adapt and prepare for competition worldwide.

Shortly after announcing our liberalization policy came the global

financial crisis that shook the world. The Thai market, even with

very little direct exposure, felt the impact. Developed countries

learned from the crisis and passed law amendments requiring

tighter regulation. Questions arose whether we were sure we

wanted to continue with our liberalization plan, a move that seemed

to be in the opposite direction from the rest of the world.

Let me say first that the term "liberalization", which basically

means less regulation, is broad. There are many objectives of

regulation. We need to differentiate between regulations which

are meant to protect investors and the financial system (such as

setting standards for public offering or for brokers' financial standing

and conduct) and those which exist to protect the industry (such

as restricting the number of licenses or having a commission floor).

Above all we must not forget that capital markets exist primarily

to serve the financing needs of businesses and the investment

needs of savers, rather than securities businesses as an end in

itself, although having a strong and competitive securities industry

will certainly help the market in fulfilling its function. The question

therefore is not simply about whether or not to liberalize, but rather

about how to facilitate capital mobilization and investment, how to

protect investors and our financial system, and how to strengthen

the securities industry.

In the policy formation process, the SEC has considered several key

trends which are expected to take place in the next 10-20 years,

namely (1) the rise of emerging Asia as a major contributor to world

economic growth, although the question remains as to how much

Thailand can benefit from this opportunity; (2) increasing global

connectedness among financial markets, which brings opportunities

as well as risks; (3) environmental problem and scarcity of resources,

resulting in the need to manage these risks and opportunities for

products that address this need; and (4) an aging trend worldwide

and in Thailand, which can have impact on productivity, and which

implies that we need to strengthen our social safety net for our

growing number of people in retirement.

With the above trends in mind, the SEC is adopting a policy mix of

liberalization in some areas, tighter regulation in others, along with

an increased emphasis on public education.

Regulations should be streamlined to facilitate capital raising, not

only for local businesses and infrastructure projects crucial to our

national competitiveness, but also for leading enterprises in other

countries, for example in Indochina, so Thailand could stand a chance

to play a regional role.

Securities firms should have more freedom to offer products and

services to their clients, in terms of product variety, currency

denomination, and distribution channel, so that they can compete

with foreign counterparts. Enabling firms to compete is better than

protecting them by inhibiting competition from new entrants or

foreign firms (since the latter has the effect of restricting customer

choice and reducing industry's incentive to improve its own competitive

ability).

On the other hand, regulations can be tightened for intermediaries

and market professionals. When the SEC plays less and less role

in screening products for the public, some other mechanisms must

be in place to ensure adequate investor protection. Financial advisors,

fund managers and brokers are expected to perform due diligence

and undertake thorough analysis before making investment decisions

or recommendations to their clients. And securities firms should be

required to have a good risk management system and adequate

capital as a cushion against external impact.

Requiring higher standards and level of accountability for intermediaries

and market professionals is not inconsistent with promoting competition

and investor choice.

Finally, there is a nation-wide problem of poor financial literacy.

A large portion of our population still lacks the skills to manage their

own money. Nor do they see the need to invest for old age. Given

the fact that Thailand is now an aging society, poor financial literacy

will lead to the problem of poverty and burden to the government

in the long run. Low financial literacy is also a major obstacle to

capital market development. This is why the SEC has begun to

put a great emphasis on building financial literacy in addition to

the above liberalization plan.

5

Securities Offerings (Jan 1 – Sep 30, 2011) Equities

Type of offerings No. of company

Q1 Q2 Q3

Initial public offerings (IPO) – stocks 2 2 2

Public offerings (PO) – stocks 3 2 4

Public offerings (PO) – warrants 0 0 0

Total 5 4 6

Note: Some have not started the offering process.

Debt securities

Type of securities Offering value (million baht)

Q1 Q2 Q3

Short-term debt securities 310,462.64 243,104.35 182,856.36

Long-term debt securities 68,436.00 51,861.08 13,340.00

Other debt securities* 11,055.04 1,088.09 925.16

Total 389,953.68 296,053.52 197,121.52

Note: *Including convertible debentures, structure notes and securitization bonds.

Preparation for the Next Decade Advertorial published in The Nation newspaper on August 1, 2011

The SEC and the Federation of Thai Capital Market Organizations

(FETCO) held a workshop entitled “Thailand’s Capital Market in

the Year 2020” bringing together leading participants and experts

in the Thai financial market to brainstorm and exchange

viewpoints on how the Thai capital market can become more

responsive to needs of real sector, capital market as well as the

general public amidst dynamic global changes in the next

10-20 years.

The participants emphasized that the Thai capital market must be

prepared and re-define forward looking strategies to focus on how

to seek benefit from Asian economic growth and also cope with

challenges and obstacles to outstand or at least be on par with

others. The workshop came up with the conclusion below.

Enhancing real sector’s capability

The Thai capital market must have a crucial role in facilitating

resiliency and enhancing competitiveness of the real sector to

serve domestic and regional needs. Convenient fund raising

channel through the Thai capital market must be made available

particularly for middle and small enterprises. Creation of infrastructure

fund, as a vehicle to help push forward development of the country

and lessen burden on government budget, must also be supported

and accessible for investment of the general public. Meanwhile,

new derivatives products should also be introduced as tools for

risk management available for business enterprises to deal with

risks associated with oil prices, exchange rates or agricultural

product prices.

Another important issue in discussion was corruption that has

been known to be an impediment to Thai business development.

The participants reached a consensus that capital market can and

should serve as a mechanism of anti-corruption. Measures to combat

corruption should focus on “the payer,” to make corruption harder

to commit. The measures could be taken on persuasive as well as

supervising and monitoring sides; setting up CSR Anti-corruption

guideline and randomly auditing the company’s payment, for instance.

The roadmap on anti-corruption is expected to be announced

within this year.

Strengthening competitiveness

Establishing the Thai capital market’s outstanding role in the

region is considerably essential. It was strongly reaffirmed that,

to achieve the goal, demutualization of the Stock Exchange of

Thailand (SET) should be hasten as it will equip the bourse with

structure responsive to customers’ needs and more competitive in

the global arena. Importantly, Thailand should now aim to become

a fund mobilization hub for Indochina’s leading businesses and

ultimately for the region. Together with the upcoming liberalization

of securities business, local firms need to be prepared for more

intense competition with expected newcomers from overseas.

Responding to needs of general public and society

The Thai capital market should have more roles in lessening

economic and social inequality by promoting better understanding

among the general public on personal finance both in terms of

financial basics and investment know-how. Participants

acknowledged necessity in founding an organization responsible

for giving the general public knowledge and advice in connection

with proper personal finance management. In the meantime,

coverage of retirement savings system which has been insufficient

should be expanded countrywide.

The workshop was regarded as a crucial step to establish a more

active role of the Thai capital market in serving as a vital driving

mechanism for the country’s economy. The outcome will be

developed and proposed to the new government. Last but not

least, it is worth emphasizing that all the aforesaid cannot be

achieved without support and cooperation from public and

private sectors.

6

Dialogue and Activities with Industry (cont’d)

Enforcement

Administrative Sanctions and Others In Q3/2011, the SEC imposed administrative sanctions on ten investor

contacts for their misconduct as summarized below:

Type of

approved persons

Misconduct Name Penalty

Investor

contacts

Interfering with client assets

1. Amnaj Kurakaew 1-month suspension, starting Aug 10, 2011

2. Jindawad Jongsukklang 3-month suspension, starting Sep 1, 2011

3. Jitarpa Sarunwong 3-month suspension, starting Sep 14, 2011

breaching

telephone recording

requirement

4. Wanida Soythong 3-month suspension, starting Sep 1, 2011

5. Wachira Duangpanya

Public reprimand

Sending

improper trading order

6. Wuttipong Raunggitvanit

Interfering with client assets

7. Watana Tantiwarun

8. Srisupaluk Rodari

9. Surat Boonrat

10. Surasak Churabao

Auditors Breach of duty

11. Jadesada Hungsapruek

1-year revocation

of approval, starting Sep 22, 2011

Note: More details in SEC releases No. 75, 84, 86 and 89/2011.

The SEC also ordered the following companies to rectify their financial

statements due to non-compliance with generally accepted accounting

principles:

Mandarin Hotel Plc. (MANRIN), Chiang Mai Ram Medical

Business Plc. (CMR), Ramkhamhaeng Hospital Plc. (RAM),

and Sikarin Plc. (SKR) to rectify their Q1/2011 financial

statements and submit them to the SEC by August 17, 2011;

Scan Global Plc. (SCAN) and SMC Power Co., Ltd. to rectify

their Q3/2010 and 2010 financial statements and submit them to

the SEC by August 28, 2011;

Yarnapund Plc. (YNP) to rectify its Q3/2010 and 2010 financial

statements and submit it to the SEC by September 29, 2011.

Note: More details in SEC releases No. 63, 82, and 83/2011.

Fine Settlement The Settlement Committee imposed a respective fine of Bt5,363,120.64,

Bt1,296,010.44, and Bt3,723,416.40 on Phaibul Chalermsaphayakorn,

Pongchalerm Chalermsaphayakorn, and Chaiwat Cruecha-em for using

undisclosed information they had obtained by virtue of their positions to

sell shares and warrants of Unique Mining Services Plc. (UMS) and also

imposed a fine of Bt333,333.33 on Patra Chalermsaphayakorn for aiding

and abetting. More details in SEC Releases No. 76/2011.

Criminal Complaints The SEC in cooperation with the Royal Thai Police - Economic

Crime Division (ECD) of the conducted a raid on Master Business

Consult Co., Ltd. and filed a criminal complaint against the

company and its management - Wittaya Phanrungrat and

Pinit Ratanajarurak - for undertaking derivatives business

without license in violation with the Derivatives Act B.E.

2546 (2003).

More details in SEC Releases No. 74/2011.

Court Judgment The Southern Bangkok Criminal Court on August 2, 2011

convicted OLT Enterprise Co, Ltd., Kittikorn Sirilertsuwan, and

Warunrat Sirilertsuwan for undertaking derivatives business

without license in contravention of Sections 16 and 125 of the

Derivatives Act in conjunction with Section 83 of the Penal Code.

The three defendants were fined 20,000 baht each while

Kittikorn and Warunrat, also were sentenced to a six-month

imprisonment. The jail term, however, was suspended for

two years.

More details in SEC Releases No. 74/2011.

Enforcement Summary (Jan 1 – Sep 30, 2011) Administrative sanctions and others

Category Probation/

Public

reprimand

Suspension Revocation

Investor contacts 6 6 4*

Auditors - - 2

Financial advisors/supervisors 2 - -

Executives of asset

management companies - -

Executives of securities

companies - - 1*

Total 8 6 7*

Note: *Simultaneously revoked from serving as investor contact as well as executive of securities and derivative business operator for the same period of time.

Criminal sanctions

Fine settlement Criminal complaint

No. of cases

No. of persons

Fine payment (baht)

No. of cases

No. of persons

105 69 169,620,385.03 11 24

Disclaimer: This newsletter is for information purposes only. The analysis, opinion or conclusion presented herein are those of the editorial team. There shall be no legal binding to the SEC Thailand.

Corporate Affairs Department

Securities and Exchange Commission, Thailand

16th Floor, GPF Witthayu Tower, 93/1 Wireless Road,

Lumpini, Patumwan, Bangkok 10330, Thailand

Tel: (66) 2695 9503-5 Fax: (66) 2256 7755

Email: info@sec.or.th Website: http://www.sec.or.th

Tell us what you think of Capital Thailand

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