Sabuy Technology Plc is scheduled to meet with the Department of Special Investigation (DSI) on Wednesday to ask the agency to investigate possible naked short selling of the company earlier this year after the Stock Exchange of Thailand (SET) insisted there was no such selling.
Chookiat Rujanapornpajee, founder and chief executive of Sabuy, is gathering the names of shareholders who were affected by what the company suspects was naked short selling in late October, causing the share price to fluctuate.
The names will be submitted to the DSI at the meeting tomorrow, Mr Chookiat posted on the Facebook account Sabuy CEO.
Previously Sabuy notified the SET, asking it to verify that 20 million shares owned by a shareholder were missing in late October.
The major shareholder in question deposited these shares with a custodian, but did not authorise any shares to be borrowed.
On Dec 14, the bourse said after checking the transactions, it did not find any naked short selling because the seller possessed shares greater than the amount sold.
The SET said it received evidence from the investors involved, who said they knew some shares were transferred to the seller before the sale order was made.
On Nov 1, the company notified the SET it had a new shareholder, with a change in shareholding based on the transaction in question.
According to the SET, Arnonchai Veerapravati sold 20.585 million Sabuy shares, equivalent to 1.1% of the company’s voting rights, to Gem Global Yield Llc SCS, a US-based fund.
After the transaction, Mr Arnonchai holds 227.8 million shares of Sabuy and is the company’s second-largest shareholder at 12.3%.
“The SET continuously monitors capital market transactions to prevent illegal activity. Any wrongdoing or violation of the regulations is subject to punishment,” the bourse said.
Mr Chookiat said the SET didn’t explain anything and the company disagrees with the bourse’s interpretation.
“I will submit to the DSI the names of the shareholders who agreed to be included in the probe to check whether there was naked shorting,” he said.