Approval on the brokerage commission fees and the SET membership fee
The SET Board of Governors has passed a resolution approving a brokerage commission fee rate, which the securities companies charge their customers, at no less than 0.25% of the trading value applying to all types of customers. For securities trading via the Internet that must be connected via an Internet Service Provider (ISP), the minimum rate will be 0.20% of the trading value. As a related issue, member companies must also improve the quality of their securities analysis service by providing at least two capable securities analysts with a minimum of a Bachelor Degree and constantly provide analysis to their customers.
In regard to Brokerage Commission Fees collected from sub-brokers, the present liberalized rates will remain until 31 December 2002. After that, the SET will consider the case again.
Moreover, the SET Board has approved the promotion of sub-brokers to member status. Promoted companies can choose to pay membership fees by following either of the following two options:
- Pay initially 10 million baht + a monthly fee worth 0.025% of the monthly trading value for a period of three years without the ceiling payment, but this must not be less than 30 million baht in total, and the payment should be made after the 3-year period until it reaches this figure.
- No initial fee, but paying a monthly fee at 0.04% of monthly trading value for a period of three years but this must not be less than 30 million baht in total, and the payment should be made after the 3-year period until it reaches the figure.
In addition, it is required that member companies strictly follow the SET's "Good Corporate Governance Practices", and the "Good Practices" of personnels in Securities business and member companies", prescribed on the 31st January 2001.
In the case where a member company violates the above rules, the company will be penalized as follows:
- 1st , Fined no more than 5 mil. baht and/or suspended from trading for no longer than 5 trading days.
- 2nd , Fined no more than 10 mil. baht and/or suspended from trading for no longer than 10 trading days.
- Next, Fined and/or suspended from trading for no more than twice the previous penalties.
Approval on the maintenance of ceiling and floor prices of 30% from the last closing prices
The SET Board of Governors has passed a resolution to postpone the adjustment of the ceiling and floor prices, due to the fact that current price movement compared to previous closing has not exceeded 30%, and, in response to the Hearing held on Friday 14th December 2001, the meeting of members determined that the present standard was still appropriate to current market conditions. Moreover, the current standard is beneficial in that it protects investors from exposure to excessive damage or risks if any mistake in securities trading taken. Therefore, the Board decided to maintain the ceiling and floor prices at 30%.
Approval to establish of a Center to Support Fund-Raising Activities and Expand the Investor Base and to appoint a Center Manager
The SET Board of Governors passed a resolution to establish a Center to support fund-raising activities and expand the investor base. The center will include the SET units under the Marketing Division and related departments. It will be responsible for helping businesses to raise funds more efficiently from the Capital Markets, expand the investor base by offering the Capital Markets as an alternative choice for savers. It will also be involved in promoting greater understanding of the Capital Markets and investments, plus upgrading the standard of professionals as well as be responsible for marketing and service operations.
The Board has appointed Ms Sopawadee Lertmanaschai as the Manager of the Center, effective from 1 January 2002.
