The company said it had bought the convertible debentures from BFIT Securities (BSEC) in a connected transaction, but the subsequent sale was not a connected transaction.

On Monday, the SET asked Finansa to disclose information concerning the transaction involving BSEC's convertible debentures because it had found that Finansa Securities, a Finansa subsidiary, had bought and sold the convertible debentures within less than two months.

Also, the transaction occurred at the same time as another subsidiary, Finansa Credit, was applying to the Bank of Thailand to establish a commercial bank by merging with Bangkok First Investment and Trust, BSEC's parent. The application went nowhere and the planned merger eventually collapsed.

"In the matter of the SET requiring us to confirm that four individual investors were the buyers of the convertible debentures from us, we would like to confirm, for the third time, that the company has the right not to disclose customers [identities] for purposes of confidentiality and the transaction did not fall under [the description of a] connected transaction," Finansa said.

In its statement on Monday, the SET referred to BSEC filing a form with the Securities and Exchange Commission stating that the holders of the convertible debentures are now big stock player Yuenyong Panwongklom, Somkiat Wong-

khunnasup, Yupha Karnchadil and Chatree Mahattanadul.

"We confirm that we sold all of the convertible debentures on October 4, 2005," Finansa said. "The company has nothing to do with BSEC's filing, stating that the current holders bought the convertible debentures in November last year, so we do not know why there is an information discrepancy."

Also, the company said that contrary to the SET's understanding, Finansa Plc and not its subsidiary, Finansa Securities, was involved in the controversial transaction.