Thai SEC urged to tackle Stark’s negative shareholder equity, boost investor trust
Finance Minister Arkhom Termpittayapaisith urged the Securities and Exchange Commission (SEC) to address Stark Corporation’s negative shareholder equity issue to safeguard investors’ interests and bolster confidence in the market.
Arkhom held discussions with the SEC’s secretary-general about the stock issue and encouraged the regulator to utilise available tools to boost investor trust in the market. He said…
“It is crucial to establish measures that protect investors, in line with the SEC’s functions of development and oversight of the securities market and businesses.”
During an SEC conference on the future of capital markets, Arkhom highlighted the significant role played by the International Organization of Securities Commissions (IOSCO) in establishing globally accepted standards for shareholder equity securities and futures markets. These standards encompass emerging capital markets, such as crypto asset markets, and play a vital role in preserving investor trust by ensuring fair, transparent, and efficient global capital markets.
The Stock Exchange of Thailand (SET) has advised investors to exercise caution when trading Stark’s shareholder equity securities, recommending that they diligently assess the company’s financial statements and other relevant information. The SET has also marked Stark’s securities with an NC (non-compliance) sign, indicating they could face delisting due to negative equity starting from June 19. Stark’s securities will continue trading temporarily from June 1 to June 30.
Additionally, the SET plans to put an SP (suspension) sign on Stark’s shareholder equity securities, suspending trading from July 1 until the company can resolve the delisting grounds and meet the qualifications necessary for trading resumption, reported Bangkok Post.
Amidst Stark Corporation’s ongoing feud, the company is now embroiled in an arbitration dispute with German firms Leoni AG and Leoni Bordnetz-Systeme GmbH. These German companies are claiming 608 million Euros (23 billion baht) from Stark, accusing them of breaching their sales and purchase agreement. Nonetheless, Stark has decided to engage in arbitration proceedings to safeguard the company’s interests. Read more HERE.
