Bangkok, May 21, 2014 – The SEC revealed that the Settlement Committee imposed a total fine of 9,670,432.91 baht on Monthatip Shinawattra and Somchai Kovitcharoenkul for using inside information to sell M-Link Asia Corporation Plc. (MLINK) shares.
With the referral from the Stock Exchange of Thailand, the SEC’s probe found that during July 27 – August 15, 2011, Monthatip sold 29 million MLINK shares in securities trading account of the M Capital Holding Co., Ltd. (M Capital Holding). She traded MLINK shares in such a way that taking advantage of others by using non-public information material to MLINK share price which was MLINK’s 315.79 million operating net loss in Q2/2011. The loss was resulted from an extraordinary item on allowance for impairment work in construction of Portalnet Co., Ltd., its subsidiary. Monthatip learnt of this information while she was MLINK’s chairman of the executive committee and president as well as an authorized director and a major shareholder of 49.99% in M Capital Holding.
In addition, during July 22 – August 2, 2011, Somchai sold 7,026,400 MLINK shares in his own securities trading account by using the aforementioned information learnt during his directorship in MLINK.
Monthatip and Somchai’s actions were in violation of Section 241 which is subject to sanctions under Section 296 of the Securities and Exchange Act B.E. 2535 (1992). As they agreed to enter the settlement procedure, the Settlement Committee therefore imposed a fine of 7,862,349.85 baht on Monthatip and another 1,808,083.06 baht on Somchai.