The SET Board of Governors, in a meeting held on 24 December 2004, has considered the financial standings of 17 actively traded securities of companies in the REHABCO sectors and were satisfied that most of them have improved conditions. Royal Ceramic Industry Pcl. (RCI) will return to its normal sector on 25 December 2003 and about 5-6 companies are likely to be able to return to their normal sectors as well in early 2004. Nevertheless, there are concerns over some companies being at risk of suspension if their shareholders' equity recesses-from positive to negative or from being negative to more negative positions-when the 2003 year's performance is announced in early March 2004. The SET Board thus passed a resolution to order the SET Management to warn investors to carefully study these companies' financial standings and operational performance before making investment decisions.
In addition, the Board considered that currently actively traded securities in the REHABCO sectors are likely to either have their financial standings improved to the level that they can return to their normal sectors or downgraded to the level that they must be suspended from trading. It was therefore resoluted that trading on the net settlement and margin basis will be prohibited for securities in the REHABCO Sector starting from 16 March 2004 onwards after the 2003 year's financial statements have been submitted.
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