The Stock Exchange of Thailand has revised the criteria for monetary fines for securities companies that are members to be more stringent, increasing the penalty for Naked Short Selling to a minimum fine of 1 million baht – Margin accounts, which is one of the measures to enhance supervision, effective November 1, 2024.
The Stock Exchange of Thailand (SET) has increased its supervision of securities companies that are members of the Stock Exchange of Thailand (brokers) to be more efficient by improving the criteria for monetary fines for brokers, which is one of the measures to enhance supervision in order to increase supervision of members who violate or do not comply with the rules. It will be effective from November 1, 2024 onwards.
The Stock Exchange of Thailand has divided brokers into 4 groups according to the nature of their offenses: 1) Using the trading system, using computer command sets, installation locations, and connecting computer equipment; 2) Supervision of trading through the system by me
mbers; 3) Qualifications and duties of members; and 4) Trading. In addition, the monetary fines have been adjusted to be appropriate for each case, taking into account the severity of the impact that may occur from each type of offense. For example, in the case of Naked Short Selling, the fine will be 3 times the profit received, but not less than 1 million baht (from the original adjustment equal to the profit received, without specifying a minimum fine). Or in the case of not requiring customers to post additional collateral when the customer’s assets are lower than the collateral value that must be maintained according to the criteria for trading in margin securities. The fine will not exceed 30,000 baht per time that the broker is required to call on the customer to place additional collateral (from the original fine of not more than 10,000 baht per time).
The said criteria have been reviewed and approved by the SEC board.
Those interested can view details of the revised criteria on the Stock Exchange o
f Thailand website www.set.or.th under the headings ‘Rules and Supervision’ and ‘Circular Letters Relating to Members’.
Source: Thai News Agency
