Finance Minister Arkhom Termpittayapaisith has instructed the Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC) to speed up finding more effective measures to prevent falsified financial accounts from being used to list a company on the bourse.
One of the important measures ordered by the minister is that the SET and SEC jointly seek to amend relevant laws to ensure auditors and auditing companies are also prosecuted if involved in the falsification of financial statements for a company, said Mr Arkhom.
He was commenting on a scandal involving the Stark Corporation.
The Department of Special Investigation has agreed to investigate Stark over suspicions of fraud by its former executives, which came to light after the publicly listed wire and cable maker failed to submit its financial statements on time as required by law.
Mr Arkhom said he had also stressed to the SET and SEC the importance of them expanding their investigation into alleged irregularities in the financial statements of many other listed companies.
The SET and SEC are also expected to improve their regulatory system so that they can quickly detect fraud committed by a listed company, said the minister.
The listing of Stark shares followed an unconventional path, known as a reverse takeover, or backdoor listing, through Team A Holding 2 Co Ltd (TAH2), which acquired Phelps Dodge International (Thailand) or PDITL, a US wire and cable manufacturer, said a source.
Later, Stark (formerly known as Siam Intermedia Plc) entered into an entire business transfer agreement regarding the TAH2 transfer of its shares in PDITL, and changed its name to Stark Corporation, said the same source.
The SET last week suspended Stark's securities, effective July 1, until the company is able to resolve the reason for its delisting, namely, shareholder equity is negative.
Negative shareholder equity in 2021 and 2022 constituted grounds to delist Stark. The company plans to act to lift the suspension, acting chief executive and director Vonnarat Tangkaravakoon told the stock exchange.
