The Stock Exchange of Thailand (SET) has continuously made strides towards regulatory reform, amending regulations on listed companies to improve their quality, facilitate their transactions, provide more information to investors, codify and be consistent with the Securities and Exchange Commission (SEC)’s regulations. The amendments will benefit both listed companies and investors.
SET President Pakorn Peetathawatchai said the latest regulation amendments mark SET’s continuous efforts for regulatory reform as recommended by market participants. These amendments will enhance the capital market’s sustainable development and competitive advantage at international level. SET has recently amended regulations on companies lining up to list and those already listed on the Thai bourse, focusing on 3 aspects as follows:
1) To improve listed companies’ quality – listing criteria under market capitalization approach for Market Alternative Investment (mai) will be removed while adding the criteria for infrastructure companies seeking listing on mai to accommodate fund mobilization of small infrastructure projects which are beneficial to Thailand. Under the new criteria, companies engaged in infrastructure projects with a minimum total project value of THB 2 billion are eligible to listing on mai.
SET’s listing criteria based on market capitalization approach remain in place but are under consideration for further amendments.
2) To provide more information to investors – Newly listed companies are required to hold at least one meeting in the first year after listing through SET’s Opportunity Day to provide their business information and performance to shareholders, investors and market participants. This is a good opportunity for them to access and get information as well as inquire listed companies’ executives to seek explanation just like analysts. Listing criteria have also been amended for greater clarity. Furthermore, listed companies must disclose information once there is a change in chief executive officer or more than half of the board of directors have resigned as these are regarded as important information for investors.
3) To facilitate listed companies’ transactions – SET, for example, has revised General Mandate rule and voluntary delisting rules for business restructuring, among others.
Moreover, SET has amended other regulations to improve clarity and to be in line with the SEC’s regulations.
For more information, please visit www.set.or.th and click “Rules/Regulations” and then “Regulations – Circular letter”.
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