The securities industry in Thailand has been the subject of significant change since the Asian financial crisis of 1997-98.
Thailand’s Securities and Exchange Act B.E. 2535 is the main source of securities legislation, and the Securities and Exchange Commission of Thailand (SEC) performs the functions of the capital market supervisory agency with the status of an independent state agency. Most large public companies in Thailand list their shares on the Securities Exchange of Thailand (SET), the country’s main securities exchange. Currently over 500 listed companies with a total market capitalization in excess of US$250 billion are traded on the SET.
Securities other than those of large public companies are also listed on exchanges specifically tailored for their trading. In particular, the Market for Alternative Investment was established in 1999 as an alternative stock market to the SET for small and medium sized enterprises. Thailand’s Derivatives Act B.E. 2546 (2003) came into force in 2004 in order to address legal concerns regarding derivative contracts and to provide a regulatory framework for derivatives markets and intermediaries. In the same year, the Thai Futures Exchange was established to provide a forum for trading energy, equity, interest rate and commodity derivative instruments.
We routinely advise clients in all manner of securities issues, with an emphasis on assisting clients in establishing asset management companies, borrowing and lending securities, and applying for securities business licenses in order to provide investment advisory services, securities brokerage and private fund management. We also assist multinational companies with their SEC filing obligations which apply whenever the foreign parent offers ESOPs and ESPPs to their Thailand-based employees. We continue to stay atop new developments in Thai securities law from the SEC, the Thai Cabinet, the Ministry of Finance and other governmental bodies.
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