Stock Exchange Of Thailand Explains Spread Adjustment Objectives

Miss Sopawadee Lertmanaschai, Senior Vice President of the Stock Exchange of Thailand (SET) disclosed that after SET had disseminated news about spread adjustment, starting from October, and investors and other relevant parties have expressed opinions on the matter to the SET, the SET wished to explain that the objectives of the change was due to:

1. The price of securities falling severely, especially warrants. When shares obtained from exercising rights in warrants had a low price, this had an even greater effect of lowering the theoretical price of a warrant. When ceiling and floor prices were calculated according to the specified criteria, this might result in the warrant being unable to be traded.
2. Responding to changes to the Public Limited Companies Act, No.2, which allows a company to determine the par value of its chares without limit. SET had thus to change the price spread to deal with changes which may occur in the future.

However, as there are extra opinions or information from relevant parties. SET will hold a meeting of these parties for consideration of further action.