Following a referral from the Stock Exchange of Thailand (SET), the SEC's further investigation has revealed that during 28 August 2012 – 30 October 2012, TIP's executive, major shareholder and related persons used nonpublic information that would affect the TIP share price to gain an unfair advantage by selling TIP shares to avoid a loss from the reduction of the share price.
The nonpublic information material to the TIP price was the fact that TIP had to increase its registered capital shares at the amount of 250 million baht to solve the issue of decreasing capital adequacy ratio below the requirement specified under the Insurance Law. The inside information was published via the SET on 30 October 2012 at 20.54 hours.
Somporn, who had an access to the inside information by virtue of his position as TIP managing director, sold TIP shares on 28 August 2012 and 2 October 2012 at the total amount of 70,000 shares.
Natee, who had an access to the inside information by virtue of his position as director and chief executive officer of Thaisri Insurance Public Company Limited, which was a major shareholder of TIP holding 5.49 percent of the total shares at the time, ordered TIP shares to be sold from the account of Thaisri Insurance during 13-28 September 2012 and 17-25 October 2012, at the total amount of 1,561,600 shares.
Kerati, who had an access to the inside information by virtue of his position as a senior executive of a company that was another TIP major shareholder, sold the shares in his personal trading account during 3-26 October 2012 at the total amount of 576,000 shares.
The misconducts of the four offenders violated Section 241 and liable to the penalties under Section 296 of the Securities and Exchange Act B.E. 2535 (1992). They all agreed to enter the criminal fining process.
Consequently, Somporn was fined at the amount of 612,500 baht, Thaisri at the amount of 703,487.50 baht, Natee at the amount of 500,000 baht and Kerati at the amount of 6,802,843.75 baht. The total fine was 8,618,831.25 baht.