Back to the parade ground for Thai Military Bank
(4 April 2005 – Thailand) Thailand’s Securities & Exchange Commission has censured Thai Military Bank for improper distribution of an oil company’s initial public offering shares.
Responding to complaints from retail investors, a Thai SEC investigation found that Thai Military Bank failed to comply with the share allocation method as stipulated in Thai Oil’s prospectus.
As a result, the SEC has put Thai Military Bank’s securities sales business on probation for 12 months, starting 1 April. This means the bank can continue to act as a securities selling agent but will face more serious censure if similar mistakes are made during the probation period.
SEC found that Thai Military Bank had members of staff or related people among the supposedly random share allocation list. In other instances, the bank accepted more than one subscription form from one client. Both of these practices went against the terms of the IPO prospectus.
The rap over the knuckles by the SEC is bad publicity for Thai Military Bank which is desperately seeking a major investor and was a target for ANZ in 2003 until the Australian bank pulled out of discussions.
As a result, the SEC has put Thai Military Bank’s securities sales business on probation for 12 months, starting 1 April. This means the bank can continue to act as a securities selling agent but will face more serious censure if similar mistakes are made during the probation period.
SEC found that Thai Military Bank had members of staff or related people among the supposedly random share allocation list. In other instances, the bank accepted more than one subscription form from one client. Both of these practices went against the terms of the IPO prospectus.
The rap over the knuckles by the SEC is bad publicity for Thai Military Bank which is desperately seeking a major investor and was a target for ANZ in 2003 until the Australian bank pulled out of discussions.
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