Enhancement of Supply: The SET plans to have 20 new listings on the SET, plus 30 new listing on the MAI, making a total target of 50 new listing in 2002. The SET will continue to implement aggressive marketing strategies to lure in companies and privatized SOEs with potential to list. The SET fully supports the plans of the seven privatized SOEs to list on the Exchange as scheduled by the authorities starting in the first quarter. The listing of these SOEs is estimated to raise the market capitalization by about 360,000 million baht, resulting in a rise in total market capitalization of almost two trillion baht.
In support of the SOE listings, the SET has prepared the SOE Privatization Promotion Plan to specifically serve the Government's objectives. Under the Plan, the SET will give advice to the SOEs regarding listing procedures, coordinate with related bodies to facilitate the listings and IPOs, to assist with completion within the timeframe, help facilitate and accelerate the listing and share distribution process, plus coordinate with the securities companies in regards to the opening of accounts by subscribers to SOE shares. Furthermore it will jointly hold public relations campaign and promotional activities with securities and fund management companies to encourage the subscription of SOE shares.
"Important support to attract more listed companies, besides the tax incentives, include the listing plan for the SOEs, improvements in efficiency and cost reductions in the listing process, such as a listing time shortened to only five working days after an IPO (The fastest in 2001 was seven working days). The linking of the SET systems to those of commercial banks will provide a faster and more convenient clearing and settlement system for the IPO shares. At the same time, the online IPO subscription provided by SETTRADE.COM, the "SETTRADEIPO", will be another useful tool for fast and convenient share distribution," Mr. Kittiratt said.
For existing listed companies, the SET will fully support and encourage them with increased added value services. A revision of the rules and regulations to help ease their fund mobilization activities and business administration has already been introduced. The SET encourages them to implement good corporate governance practices by holding a "Best Practices in Good Corporate Governance Award", and to convince them to constantly uphold these practices to enhance their companies' creditability with investors.
Investor Base Expansion: The expansion of the local investor base is another plan that the SET will put more emphasis on than in previous years. Marketing activities to improve basic understanding of securities investment amongst investors and related parties will be undertaken. The SET will improve its information dissemination system to provide sufficient information for investors to make more informed investment decisions. The SET will organize an investment simulation program and produce public relations material to help reach new potential target groups, such as people in their thirties to forties, Retirement Fund members, plus retirees or people close to retirement. The SET will also coordinate closely with commercial banks, securities companies, and investment management companies, to provide more investment channels for investors.
"The SET will encourage the potential of those intermediaries who have a supporting role in providing information to, and have direct access to investors. We aim to improve the capability of the marketing officers of our member companies. We fully support the establishment of an Investor Relations Unit within Listed Companies, so that investors will be equipped with better quality information useful for their investment decisions. The SET will also establish a special body to organize activities, such as workshops, to promote more understanding about investment," said Mr. Kittiratt.
In addition, the SET will act as a center to provide tools and services that will help enhance the overall efficiency, as well as reducing operating costs of the industry. This includes linking the SET systems to those of the commercial banks to facilitate the clearing and settlement process, creating a central ID for collecting investment information and shortening the time between the IPO and listing, shortening clearing and settlement times, as well as establishing a center for financial information for listed companies and member companies to help them save time and on the costs of information disclosure.
In the meantime, the SET also plans to establish the Front Office Service Bureau, designed to accommodate the bond and derivatives trading as well, for member companies to augment the 'Back Office Service Bureau' already launched in 2001, plus establish an IT learning center to house an IT database and, at the same time, provide e-learning services for professionals in the securities industry. The SET has, moreover, plans to establish an "Investor Protection Fund", once there are accommodating laws and regulations. This Fund will be established with 300 million baht initially, and it will be another mechanism designed to protect investors.
"Besides the business plans already mentioned, the SET also has the honor to welcome representatives from other Exchanges in the Asia-Pacific region in hosting the 21st EAOSEF General Assembly this year in Bangkok. This will be a great opportunity for us to both show the International Community the potential of the Thai Capital Markets and to exchange knowledge and technology beneficial to the development of the Thai market.'
'The SET is confident that all these plans will help create more attractive products, enlarge the number of investors who have a good comprehension of investment strategies. In the time, plans for better services and to enhance the potential of all parties concerned in the Capital Markets will significantly strengthen the structure of Thai market, establish creditability, and make securities investments more attractive to investors as another investment option. All together, these will have a positive effect on confidence in the overall Capital Market and in the country's economic prospects," the SET President concluded.
