SEC considers compensation fund for victims of investment fraud

The newly appointed secretary-general of the Securities and Exchange Commission (SEC) disclosed that the regulatory body is examining the possibility of setting up a compensation fund for victims of investment fraud. This announcement was made during her inaugural press briefing since assuming office the previous month.

Pornanong Budsaratragoon emphasised the regulator’s commitment to restoring public trust in the capital market.

“We’ve pursued public interest matters and informed stakeholders about SEC’s actions regarding the investigations into More Return and Stark Corporation, including progress on legal proceedings for both cases.”

While the “More Return” case is currently under the jurisdiction of the Department of Special Investigation (DSI), the SEC and the Stock Exchange of Thailand (SET) are collaborating on additional investigations, with plans to provide public updates on case advancements.

As for the Stark Corporation, the SEC has levelled accusations against the guilty parties, and the investigation is being carried out by the Economic Crime Suppression Division, Pornanong confirmed.

“The SEC is tasked with identifying and addressing any weaknesses or loopholes that enabled the Stark fraud to occur, as well as deciding on how penalties should be escalated.”

Accounting fraud

For Stark’s accounting fraud, share manipulation and corruption offences, the regulator has handed over all the relevant information to the DSI for legal repercussions. The SEC is also collecting more evidence to legally penalise the offenders for manipulating stock prices and insider trading, reported Bangkok Post.

Pornanong highlighted the significant damage many investors had suffered due to the fraudulent activities of corrupt listed companies and digital asset firms.

“The SEC is contemplating the creation of a compensation fund for those who suffered losses due to these acts.”

She further added that the specifics of this fund are currently under review, with a final decision expected by the end of this year.

Regarding the government’s 10,000-baht digital handouts, Pornanong said the SEC is monitoring the progress and seeking clarity on the distribution format. She also noted that the SEC is not part of the project’s working committee appointed by Prime Minister Srettha Thavisin.

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

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