Thailand to increase brokerage violation fines
21 October 2024 Thailand
Image: Quality_Stock_Arts/stock.adobe.com
The Stock Exchange of Thailand (SET) has introduced a more stringent fine structure for member brokerages, effective on 1 November.
The fine penalty against naked short selling offences will triple to three times the illicit profits, with a new minimum penalty of one million Thai baht (US$30,000).
Previously, the penalty for selling a security without a confirmed ownership matched the profit without a baseline fine.
In addition, brokers failing to make timely margin calls will face fines of THB30,000 — up from the previous threshold of THB10,000.
The Securities and Exchange Commission of Thailand (SEC) has approved the new framework following consultations with market participants.
This move comes as part of SET’s broader initiative to strengthen its regulatory mechanism and ensure strict adherence to trading rules.
The SEC is currently consulting on draft amendments to securities trading services regulations, including short and long selling transactions, until 31 October.
The fine penalty against naked short selling offences will triple to three times the illicit profits, with a new minimum penalty of one million Thai baht (US$30,000).
Previously, the penalty for selling a security without a confirmed ownership matched the profit without a baseline fine.
In addition, brokers failing to make timely margin calls will face fines of THB30,000 — up from the previous threshold of THB10,000.
The Securities and Exchange Commission of Thailand (SEC) has approved the new framework following consultations with market participants.
This move comes as part of SET’s broader initiative to strengthen its regulatory mechanism and ensure strict adherence to trading rules.
The SEC is currently consulting on draft amendments to securities trading services regulations, including short and long selling transactions, until 31 October.
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