The Securities and Exchange Commission (SEC) has fined Udomsak Chakreya-vanich, former president of Asia Plus Securities, Bt1.49 million for insider trading of Oishi Group stock.

A SEC probe concluded that Udomsak, as financial adviser for the Oishi stock purchase deal, had bought Oishi shares on December 13, 2005, by using insider information derived from his work.

The information had not been publicised.

"Stock trading by using insider information derived from operating the business is an unfair securities-trading action. Securities firm executives are barred from such activities. However, Udomsak has already resigned from the executive of the securities firm," the SEC said.

Udomsak submitted his resignation letter to the company on January 12 and his resignation took effect on February 1.

Earlier, Asia Plus Securities CEO Kongkiat Opaswong-karn said Udomsak had wanted to resign to run his own business and his resignation would not affect the company's operations.

 Meanwhile, the SEC also put Vana Bulbon, chief executive officer of UOB Asset Management (UOBAM), and former UOBAM former property fund manager Natchaya Charoen-thanakrit, on probation for two years, and also fined UOBAM Bt1.16 million for breaching the nominee regulation.

However, Vana yesterday denied the charge and claimed innocence.

The SEC yesterday revealed that UOBAM's First Star Property Fund violated the SEC regulation by allowing the owner of the underlying asset to hold more than one-third of the unit-trust through the nominee method.

According to rules, the owners of the underlying asset can invest in their underlying asset not exceeding 33.33 per cent or one-third of the total property fund value. Many asset owners prefer to put their asset in the property fund in order to receive the tax privilege.

The income generated from the underlying asset will be tax-free while only dividends will be

taxed.

Following the SEC investigation, all unit-holders of the First Star Property Fund pledged their

units-trust as collateral with

the commercial banks in order to guarantee the credit line for the owner of the underlying asset.

Also, the SEC found that all unit-holders had a letter of consent to transfer all dividends to the owner of the underlying asset. Most of the amount of this transfer was used to repay the debt burden of the underlying asset owner.

Based on these two discoveries, the SEC fined UOBAM Bt1.16 million and put Vana and Natchaya on probation for two years.

However, after the inspection, UOBAM has corrected its operation following an order from the SEC.

Vana said the company had set up a committee to investigate this issue.

Piyarat Setthasiriphaiboon

The Nation