Executive Vice President of the SET Mr. Suthichai Chitvanich disclosed that the SET Board of Governors believed that a large number of retail shareholders might be negatively affected if Rehabco companies were delisted pursuant to a previous resolution. Therefore, to reduce any adverse effect as well as to allow firms to continue their rehabilitation, the Board resolved to discontinue the sector but to impose additional measures based on a company’s distinctive strong or weak financial stance.
Under newly-approved measures, Rehabco companies’ securities will be reinstated, but with a “C” sign attached to warn investors that the firms remain under rehabilitation. They will be given a two-year period from the day they became subject to delisting, and will also be posted with a “SP (Suspension)” sign signifying that their shares are under suspension and may not be traded.
If they fail to successfully rehabilitate within two years, their shares will be removed from trading boards and classified as ‘Non-performing’ and their codes will disappear from trading and related systems. Nevertheless, the company’s listing status and responsibility to comply with SET rules will continue to apply. Once a company meets SET requirements, they can ask for reinstatement.
Currently there are 37 firms in Rehabco:
- Nineteen have been in the sector for over two years and not yet met SET requirements for reinstatement. These companies will be removed from trading boards and placed in the Non-performing group.
- Eleven have been in the sector for over two years and are eligible for reinstatement. These firms will be moved to their normal sectors with a “C” sign attached; most will also carry a “SP” sign. Companies in this group which are currently traded will remain so.
- Seven have been in the sector for less than two years. These firms will go to their normal sectors with “C” and “SP” signs attached. They will be given a two-year period for rehabilitation starting from the day they moved into Rehabco.
