Wednesday, April 24, 2024
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SEC mulls compensation fund for fraud victims

The Securities and Exchange Commission (SEC) is studying the establishment of a compensation fund for investment fraud victims, with the study expected to conclude by year-end, says the new secretary-general.

Speaking to the press for the first time since she took office last month, Pornanong Budsaratragoon said the regulator is doing its best to restore confidence in the capital market.

“We’ve followed up on matters the public is interested in and communicated with them about SEC actions in terms of investigations of the More Return and Stark Corporation cases, including progress on legal proceedings for both cases,” she said.

While the More Return case is under the supervision of the Department of Special Investigation (DSI), the SEC and the Stock Exchange of Thailand (SET) have joined hands for further probes, with public updates planned when there is progress in the case.

As for Stark, the SEC has accused the perpetrators and the case is being investigated by the Economic Crime Suppression Division, said Mrs Pornanong.

“The SEC will evaluate and find ways to close weaknesses or loopholes that allowed the Stark fraud to occur, as well as determine how penalties should be increased,” she said.

“For Stark’s accounting fraud, share manipulation and corruption offences, the regulator has submitted all the information to the DSI for legal actions. In terms of manipulating stock prices and insider trading, the SEC is gathering more evidence for legal punishment against the offenders.

“Many investors were damaged by the fraudulent acts of corrupt listed companies and digital asset firms. The SEC is considering establishing a compensation fund for those harmed by these acts.”

Details about this fund are being studied, with a conclusion expected by the end of this year, said Mrs Pornanong.

Regarding the government’s 10,000-baht digital handouts, she said the SEC is following up on the progress and clarity regarding the distribution format.

“There is not much clarity so far,” said Mrs Pornanong.

The SEC is not part of the project’s working committed appointed by Prime Minister Srettha Thavisin.

Once there is clarity about the forms of monetary distribution, funding sources and operating format, the SET can evaluate the project, she said.

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