Stock Exchange of Thailand Slashes Fees As Incentive For New Listed Companies

The Stock Exchange of Thailand (SET) is set to reduce its annual fee by 50% and its application fee by 67% effective from July 1, 2001. Also, the first 10 listed companies on the Market for Alternative Investment (MAI) in 2001 will be exempted from the listing application fee, initial listing fee as well as enjoy a 50% reduction in the annual fee.

Mr. Vicharat Vichit-Vadakan, the SET President said that, "Besides corporate tax relief measurements for listed companies, the SET is looking at a variety of measures to encourage more companies to list, as well as ways to reduce the burden borne by existing listed companies. Our goal is to facilitate future business growth and capital mobilization. At the beginning of this year, the SET announced a moratorium on levying the fee for capital increases for listed companies. As for the annual fee reduction, we will cut it by 50% while the application fee for ordinary or preferred shares will be slashed by 67% from 150,000 baht to only 50,000 baht. These incentives will become effective from July 1, 2001 onwards."

The annual fee to be cut by 50% will be implemented at a regressive rate, which will vary according to the paid-up capital of each listed company. The more paid-up capital a company has, the cheaper the rate will be, which will help reduce costs for listed companies in the long term.

"Apart from the fee reduction for SET listed companies, the MAI is also focusing on attracting new listings by offering the first 10 companies to list by December 31, 2001 exemptions from the application fee, initial listing fee as well as 50% relief on the annual fee for five years. Such incentives will help reduce listed companies' burdens, and also to help motivate additional businesses to follow through with their plans for MAI listing." Mr.Vicharat added.

More than two years ago the SET reduced listing fees by 30% in order to lessen the financial expenses shouldered by listed companies during the Asian economic crisis. At the same time, the SET additionally reduced annual fees by 7-15% for listed companies that had set up an audit committee, in order to encourage implementation of good corporate governance. These fee reductions remain valid until June 30, 2001. The new listed fee rates above are the next steps the SET has undertaken to stimulate greater listing while also driving efforts to cut the expense of listing on the local bourse.