According to Live Incorporation's quarterly financial statement, it invested in six securities: Bliss-Tel, Power Line Engineering, Adkinson Securities, EMC, EMC warrant 1 and Navanakorn warrant 1.

The company suffered its biggest net loss - to the tune of Bt15.86 million - from investment in Bliss-Tel's stock.

In addition to its investment policy, the SET has asked Live Incorporation to declare its procedures, criteria for investment, authorised persons, guidelines on risk management, sources of funding and the reasons why such investments represent a high portion of its assets.

The SET expressed doubt about the company's report that its recent capital increase was to expand business and for reserves as working capital. It asked Live Incorporation to explain whether the securities investment was in line with its recapitalisation objectives.

The company doubled its paid-up capital from Bt230 million to Bt460 million by issuing capital-increase shares to existing shareholders in December last year for Bt237.59 million and issuing the remaining stock to Sornprom Montreewat for Bt18.90 million in February this year.

In a separate statement, the SET said that Bliss-Tel had investments in securities worth Bt220.28 million, accounting for 19.37 per cent of its total assets. In its quarterly financial statement, Bliss-Tel reported current investment in Live Incorporation amounting to Bt29.18 million and securities receivable amounting to Bt191.10 million, resulting from sales of securities prior to the end of the accounting period and within the T+3 period.

The SET has asked Bliss-Tel to identify criteria for its investment decision-making, as Live has been mired in operational losses since 1997 and has never paid a dividend.

"International Engineering (IEC) holds 19.3 per cent of shares in Bliss. There is information showing that IEC also invested Bt19.8 million in Live Incorporation as at March 31, 2007. The SET wishes to know the reasons for investment in these securities and whether there was a joint decision by authorised persons from IEC and BLISS," the SET said.

The SET has asked Bliss-Tel to specify the use of funds from its recent recapitalisation and how such spending is in line with the objectives of the capital increase.

In the first quarter of this year, Bliss-Tel raised Bt223 million from capital-increase shares sold in two batches through private placement. Many purchasers of the first batch were related to Live Incorporation.

Apinan Panyakorn is a member of the audit committee of Live Incorporation, while Toedphand Isarangkura na Ayudhya and Pornchit Bunpracha each hold a 4.8-per-cent stake in the company.