Stock market regulators are strengthening their collaboration with the Anti-Money Laundering Office (AMLO) in the fight against illegal securities trading, in a bid to dismantle criminal economic activities and enhance investor confidence in the Thai capital market.
Under a memorandum of understanding (MoU) signed on Monday, the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) vowed to strengthen their collaboration under the Securities and Exchange Act and the Anti-Money Laundering Act.
The collaboration aims to dismantle criminal economic activities, particularly those related to securities trading, and to enhance the law enforcement capabilities of each agency as well as their joint operations.
"Economic crimes in the capital market not only cause direct harm to investors but also have broader implications for the country's overall economy," said SEC chairman Wisit Wisitsora-at.
Several major cases have surfaced in the capital market over the past few years, involving significant financial damage and widespread impacts, he added.
SET chairman Kitipong Urapeepatanapong said the MoU signing aims to assure the public that future securities violations will be met with swift and coordinated responses from relevant authorities against the offenders.
The authorities will reduce redundant work processes and enhance the handover process between regulators and law enforcement agencies to ensure faster and more efficient action within their respective legal boundaries.
SEC secretary-general Pornanong Budsaratragoon said the new trilateral agreement is expected to deepen cooperation in information exchange, coordination, and the potential formation of joint task forces when necessary.
The goal is to improve prevention and enforcement efforts against unfair securities trading practices, embezzlement, fraud, and financial misconduct under the Securities and Exchange Act B E 2535 (1992), considered predicating offences under the Anti-Money Laundering Act that impact investor confidence and economic development.
SET president Pakorn Peetathawatchai said collaboration among agencies within the justice system can deter and swiftly enforce legal actions against offenders.
"Such efforts are crucial in restoring and strengthening investor confidence in the Thai capital market," he noted.
The agreement comes as the SEC and SET have coordinated their efforts in the case of Warrix Sport after the listed apparel company found that 15 million shares deposited as collateral with the custodian are missing, with no default in loan repayment.
Ms Pornanong said the regulators have been in talks with Warrix executives since last week. However, the custodian, Wisan Wanasuksrisakul, Warrix's chief executive and the company's largest shareholder, deposited the shares with a company that does not come under the supervision of the SEC.
"Thus we have no authority to take action, but if we have found any real wrongdoing, it will enter into the corruption process according to general law," Ms Pornanong said.
Mr Wisan informed the SET last week that the company sold 14,942,530 shares, or 2.49%, to Hi-Tech Apparel, a sportswear original equipment manufacturer and exporter for many global brands, by making a transaction through the Thailand Securities Depository Co.
He proceeded to terminate the loan agreement and is filing a legal lawsuit to track down the missing shares and make the custodian return all the shares deposited as collateral. He has also requested a court order to seize the 105,211,000 shares remaining in the custodian's possession, prohibiting the custodian and its representative from selling or transferring such shares.
