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Tippee Liability for Insider Trading Under the SEC Act
SEC + Public Prosecutor v Tippee Individual
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
Defendant traded SET-listed shares on the basis of price-sensitive information conveyed by a tipper who was an insider of the issuer.
Legal Issue
Whether a tippee who is not himself an insider can be held liable under SEC Act §241 / 243.
Holding
Supreme Court line confirms tippee liability where the tippee knew or ought to have known the information's source as an insider, mirroring international insider-trading frameworks.
Reasoning
SEC Act §241 prohibits trading on undisclosed material information regardless of how the information was acquired; the legislative intent is market-integrity protection, not narrow insider-only liability.
Significance
Strengthens enforcement against family-and-friend trading networks; consistent with FATF / IOSCO standards.
Practical Takeaway
Recipients of price-sensitive information from insiders should not trade; documentation of independent information sources matters in defence.
Cited Statutes
- Securities and Exchange Act B.E. 2535 §241, §243
- SEC Notifications on prohibited trading
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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