Securities which are subject to the SET’s delisting rules include all companies that have negative shareholders’ equity, those which have partially or totally ceased operations, or any firms which have failed to submit their financial statements within 180 days of the stipulated date. Furthermore, listed companies that may ask for voluntary delisting in the near future are regarded as subject to delisting as well.
As a result, common shares listed in the Companies Under Rehabilitation (REHABCO) Sector, all of which may be subject to delisting, will not be included in the SET50 and SET100 starting with the 1H/2006 indexes. This will enable the SET50 and SET100 to more accurately reflect the overall picture of the Thai market.
Eligible stocks for inclusion in the SET50 and SET100 indexes must be listed and traded on the SET for a minimum of 6 months and ranked in the top 200 on the SET’s main board in terms of their average daily market capitalization for the past 12 months plus have maintained their share distribution or free-float qualifications so that their ordinary shareholders hold shares in aggregate of not less than 20% of their paid-up capital. These stocks must also be actively traded, which means that they must have a monthly turnover value of more than 50% of the total average monthly turnover value per stock in the same month, and this turnover rate must continue for a minimum of 9 out of the 12 months during the evaluation period. As emphasized in the previous paragraph, under the new ruling, eligible stocks must now neither be subject to an imminent delisting in accordance with the SET’s rules nor be scheduled for imminent voluntary delisting. Also, to be considered for eligibility for the two indexes’ calculations a stock’s trading must not have been, nor even have had the possibility of being, suspended for an extended period of time.
