The SET President, Mr. Kittiratt Na-Ranong, in announcing the SET Board's resolutions on October 30 2002, said that it has given further consideration to the corporatization of the SET, which it has been studying since 2000. In 2001 it appointed a committee to consider and study corporatization and approaches to it and has periodically gathered comments and suggestions from related parties. The Committee presented results of its study to the Board last October and suggested that the SET should consider the benefits of corporatization on two main objectives: enhanced operational efficiency and a governance structure that represents the interests of all stakeholders in the Thai capital markets.
"The Board has listened to the pros and cons of corporatizing the SET from capital market experts as well as related local and overseas organizations and agreed that it is not yet time to accelerate the process. From studying overseas examples of corporatization, it was found that there were still controversial areas that hadn't been satisfactorily resolved. Moreover, currently the SET does not need to undertake any fundraising as it has sufficient funds for its operations. The Board, therefore, decided to continue studying the pros and cons of corporatization so as to make the most prudent step, hence avoiding any negative effects that might impact related parties in the capital markets," Mr. Kittiratt said.
To date, the SET has been improving its efficiency and flexibility in administration and decision-making through, for example, a strategic adjustment to become more aggressive in marketing itself. As well there have been structural adjustments to cope with the external environment, the establishment of an internal assessment system, improvements in the employee assessment and remuneration system, and the establishment of a new working culture in the organization. Furthermore, of the SET's eleven board members, the number reserved for election from member companies has been reduced from five members to three. The remaining two will now be appointed by from stakeholder groups that are non-executive or are employees of member companies. Since these members will take part in determining the policy of the SET, the present SET board structure thus represents a wider range of stakeholder groups, which may be regarded as an organizational reshuffle in anticipation of change, even without corporatization.
In addition to this issue, the SET Board also approved the removal of rules prohibiting companies in the process of filing, as well as their subsidiaries, major shareholders, executives, and financial advisors, from disclosing information not stated in the Information Disclosure Form, the prospectus, documents submitted to the SET and the SEC, as well as information that may have an effect on the company's stock price or on investors' decision-making. These rules, which had been effective since 1994, will be abolished to reduce duplication with those of the SEC.
In regard to the information disclosure rules of the SEC for companies in the filing process, their financial advisors and underwriters are allowed to publish articles or research reports if the stockholdings are disclosed and the dissemination is conducted carefully and impartially.
The SET Board also approved the appointment of eleven board members of the Thailand Security Depository Co., Ltd (TSD), who will serve from November 1, 2002 -December 31, 2003. The TSD Board members comprise four SET Board members, Mr.Chavalit Thanachanan, SET Chairman as TSD Chairman, Mr. Kittiratt Na-Ranong, SET President as TSD Vice Chairman, Mrs. Wiwan Tharahirunchote, SET Board member appointed from the SEC and Mr. Suvit Mapaisansin SET Board member appointed from the member companies as TSD Directors. In addition, Mrs. Patareeya Benjapolchai, SET Executive Vice President is also appointed as a TSD Director.
There are also five experts appointed as TSD Board members: Mr. Techapit Sangsingkeo, the BOT Deputy Governor-Administration, Ms. Orajit Singkalavanich, Director-General of Commercial Registration Department, Mr. Suwit Udomsab, Vice President of Krung Thai Bank Public Co., Ltd.- Foreign Business and Investment Banking Business, Mr. Charamporn Jotikasthira, Vice President- Information Technology of Siam Commercial Bank Public Co., Ltd., and Dr. Surat Palalikit, Managing Director of Krung Thai Computer Services Co., Ltd. Mrs. Nongram Wongwanich continues as TSD President.
