SET Increases Penalties for Brokers
The Stock Exchange of Thailand has announced increased fines for brokerages that engage in naked short selling, with penalties tripled to a minimum of one million baht. Starting November 1, the rules include a classification of violations into four categories and higher fines to mitigate market volatility. More information is available on the SET website.
The Stock Exchange of Thailand (SET) has announced tougher penalties for brokerages, specifically targeting the practice of naked short selling.
Starting November 1, fines for violations will be increased to three times the illicit profits, with a minimum penalty of 1 million baht.
Previously, the penalties were matched to the profit without a baseline fine.
Naked short selling involves selling securities without borrowing or confirming their availability, which is illegal.
Legal short selling involves borrowing shares to profit from price drops.
Regulators have tightened rules this year to address volatility concerns, including implementing an 'uptick rule' to limit price movements.
Friday's statement from the SET detailed a reclassification of brokerage violations into four categories: trading, program trading infrastructure, system-based trading supervision, and membership qualifications.
Increased fines reflect the seriousness and market impact of offences, such as a raised penalty of 30,000 baht for untimely margin calls, up from 10,000 baht.
More details are provided in the 'Circular Letters' section on the SET website.
Starting November 1, fines for violations will be increased to three times the illicit profits, with a minimum penalty of 1 million baht.
Previously, the penalties were matched to the profit without a baseline fine.
Naked short selling involves selling securities without borrowing or confirming their availability, which is illegal.
Legal short selling involves borrowing shares to profit from price drops.
Regulators have tightened rules this year to address volatility concerns, including implementing an 'uptick rule' to limit price movements.
Friday's statement from the SET detailed a reclassification of brokerage violations into four categories: trading, program trading infrastructure, system-based trading supervision, and membership qualifications.
Increased fines reflect the seriousness and market impact of offences, such as a raised penalty of 30,000 baht for untimely margin calls, up from 10,000 baht.
More details are provided in the 'Circular Letters' section on the SET website.
