SEC mulls change to self-reporting

The Securities and Exchange Commission (SEC) is considering reviewing its shareholder disclosure framework to strengthen investor confidence and avoid a repeat of the recent incorrect self-declared reporting that involved True Corporation.

Anek Yooyuen, deputy secretary-general and spokesman for the SEC, said the regulator is in the final stages of gathering and assessing evidence following a joint fact-finding process with the Economic Crime Suppression Division (ECD) of the Royal Thai Police regarding an individual who appeared in SEC filings as the reported owner of a 7% stake in True.

True executives said they were unaware of Supaporn Phimpong being a shareholder in the telecom company.

She also filed reports claiming substantial stakes in other blue-chip companies, including Bangkok Bank, Kasikornbank, Major Cineplex, Asia Aviation and G J Steel.

The case garnered significant attention from investors because the disclosure was publicly released through the SEC's reporting system despite questions over whether the filer was legally entitled to report the shareholding.

According to Mr Anek, the SEC and ECD questioned Ms Supaporn on July 10 as part of the investigation. Interview information is being analysed to determine whether securities laws were violated.

"The information gathered will be used to assess what offences, if any, may have been committed," he said.

Mr Anek acknowledged the investigation found indications that inaccurate information may have been intentionally submitted, raising concerns about the reliability of filings that investors may use to make decisions.

The SEC flagged irregularities in the filing and informed the market on July 3 the information was preliminary and subject to verification. The disclosure was subsequently withdrawn.

The incident prompted calls for tighter controls over the reporting process, particularly because investors may have reacted to the information before it was identified as problematic.

Mr Anek said the SEC is considering additional measures to improve the accuracy and credibility of information released through its disclosure systems.

The regulator has received feedback from investors, market participants, media organisations and other stakeholders on possible improvements.

"We take these concerns seriously and will consider all suggestions," he said.

"Our goal is to ensure that information disclosed through our systems is accurate and that similar incidents do not occur again."

Regarding revisions to the Form 246-2 disclosure process, Mr Anek said the regulator must strike a balance between timely disclosure and thorough verification.

Such filings contain material information that can influence investment decisions, making it important for the market to receive them quickly, he said.

Extensive verification requirements could delay the release of information that investors need.

"The challenge is finding the appropriate balance between speed and verification," Mr Anek said.

The SEC is exploring ways to improve its ability to verify information more quickly and issue alerts to investors when irregularities are detected.

"The focus is on enhancing the efficiency of our verification process and ensuring investors are informed as early as possible when concerns arise," he said.

"We will review all proposals and determine what additional safeguards may be necessary."

Mr Anek declined to comment on whether the regulator has determined if Ms Supaporn acted as a nominee shareholder, saying the issue remains under investigation.

The SEC's findings point to concerns over the submission of inaccurate information to the regulator and the entry of such information into the electronic disclosure system.

"Other potential offences require further in-depth investigation," he said.

Filings under Form 246-2, which disclose acquisitions or disposals of significant shareholdings, are based on information submitted directly by individuals who are legally required to report such transactions.

"Under the law, the responsibility lies with the person acquiring or disposing of shares to submit the information," said Mr Anek.

"Once the filing is received, it is disclosed to the public."