- Appending of the qualifications of new members (licensed brokers)
- The appointment of a committee on infringements of brokerage commissions,
- The establishment of a Front Office Service Bureau.
The SET Board of Governors passed a resolution to include the addition of new qualifications of members and amend the admission procedures in 2002 accordingly so as to facilitate the transformation of existing sub-brokers to broker status. The qualifications require, for example, any company applying to have:
- No less than 100 million baht worth of paid up capital
- No less than 150 million baht worth of the shareholders' equity
- Board members and senior executives from the level of assistant manager up or equivalent with more than 3-year experience in the securities business,
- At least two securities analysts had at least a Bachelor degree of education, and
- At least two certified equity securities marketing representatives, etc.
Appointment of a committee on infringement of brokerage commissions
The SET Board of Governors agreed to appoint a committee on infringement of brokerage commissions, comprising five committee members. These will adjudicate on and select the punishment to be imposed on member companies, non-member companies, and officers of related companies in cases that they fail to follow the regulations of the SET as prescribed in the "Rules and Procedures for Charging Brokerage or Agent's Fees for the Buying or Selling of Listed Securities and Members' Good Corporate Governance, 2002". The committee will remain in office for a period of three years starting from the appointment date.
The list of the committee members is as follows:
- Mr. Yothin Ari, Chairman
- Police Colonel Chaiya Siri-ampunkul, Member (Legal specialist)
- Mr. Kobkiat Boontherawara, Member (Representative from Association of Securities Companies- ASCO)
- Mr. Chongruk Rarueysong, Ph.D., Member
- Mr. Kittiratt Na-Ranong, Member
Approval for the Establishment of the Front Office Service Bureau
The SET Board of Governors passed a resolution to set up a Front Office Service Bureau, following the establishment of the Back Office Service Bureau last year. The Front Office Service Bureau is expected to act as an administration center for the securities companies, helping to reduce their expenses and the costs of dealing with securities transactions. Moreover, the Front Office Service Bureau project is also expected to be able to accommodate many different kinds of securities and to be linked directly to the Internet trading provided by the SET. This will contribute to the development of more efficient market infrastructure in the march toward a totally integrated market in the future. It is expected that these services, including all existing working systems, will become available by April 2002.
The establishment of the Front Office Service Bureau is to be conducted in line with the Capital Market Development Plan regarding reduction of transaction costs and the development of the market infrastructure. Furthermore, it should help facilitate member companies by reducing their expenses on their operations and contribute to the development of the system as a whole as this infrastructure will also be customized to accommodate the operations of the soon to be promoted sub-brokers. The SET will shortly communicate with member companies about the project in detail.
