The SET Executive Vice President, Mrs. Patareeya Benjapolchai, disclosed the SET Board of Governors' meeting resolution on 24 March 2004 which stated: "The SET Board has also resolved to provide an investment fund and/or loan worth THB 300 million to the Derivatives Market (Thailand) Public Co., Ltd., a SET subsidiary established to be a center for derivative instrument trading. It is expected that the company will commence operations in 2005. The derivatives market will be a market for the trading of derivatives instruments, an important tool for entrepreneurs and investors to manage financial risks which also helps equip the Thai capital market with a wide array and a more inclusive range of products."
The SET Board has also considered the case of ROYNET, a MAI-listed company that has not submitted its 2002 financial statements within the 180-day period from the day the SET announced that it was subject to delisting. Moreover ROYNET has not yet submitted its quarterly and yearly financial statements for the year 2003, which also makes it subject to delisting. The SET has notified ROYNET to submit its financial statements by 1 March 2004 and that it might be considered for delisting if it failed to do so. ROYNET has explained and requested for deadline extension since it faced administration problems and has only recently received acknowledgement from its auditor.
"The Board has considered the fact that ROYNET's new board members have assumed their positions only recently in late June 2003 and have had conflicts with the previous administration, hence unable to accomplish a smooth transition and an ongoing operation, and might consequently lead to no positive response toward the company's request for an auditor. These have been regarded as uncontrollable factors for the existing administration.
The SET Board thus resolved to extend the deadline to 31 July 2004 for making and submitting the 2002 financial statements, the 2003 quarterly and yearly statements as well as the statement for 2004's first quarter. The company will also be required to produce a business plan showing clearly that it will be able to operate continuously and stably. The plan must be submitted to the SET by 31 October 2004. If it fails to do so, the SET Board will again consider the company's delisting," Mrs. Patareeya said.
She also said that the resolution includes a requirement for any financial institutions listed on the bourse and having engaged in a merger or acquisition as stipulated in the Commercial Banking Act that they request not to abide to the SET rules since existing regulations do not include any such case.
"The SET Board has thus resolved to issue a new regulation to allow any merger or acquisition in line with the "Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business" and "Commercial Banking Act". This is to help facilitate the merger or acquisition of listed companies in accordance with the Commercial Banking Act to help undergo a smooth and quick process and to cope with any financial institutions' mergers in the future. These will be proposed to the Securities and Exchange Commission for further approval."
