The Stock Exchange of Thailand has revised the criteria for penalties in the form of monetary fines for securities companies that are members to be more stringent, which is one of the measures to enhance supervision, effective from 1 November 2024 onwards.
The Stock Exchange of Thailand 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 classified brokers into 4 groups based on their offenses: 1) Using the trading order system, using computer command sets, installation locations, and connecting computer equipment; 2) Supervision of trading through the system by members; 3) Qualifications and duties of being a member; and 4) Trading. In additi
on, the monetary penalty has been adjusted to be appropriate for each case, taking into account the severity of the impact that may occur from each 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 fine 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 have decreased to below the collateral value that must be maintained according to the criteria for trading securities in the margin category, the fine will not exceed 30,000 baht per time that the broker is required to request customers to post additional collateral (from the original fine not exceeding 10,000 baht per time).
These criteria have been reviewed by relevant parties and approved by the SEC Board.
Interested parties can view details of the revised criteria on the Stock Exchange of Thailand website www.set.or.th under the headings
‘Rules and Supervision’ and ‘Circular Letters Relating to Members’.
Source: Thai News Agency