To bolster stability, The Stock Exchange of Thailand (SET) will increase the proportion of local and foreign institutional investors in the market to 40% in 2007, and 50% in 2009. In separate developments, SET, in conjunction with commercial banks and securities’ firms, will establish 30 ‘cyber (securities) branches’ by end-2007, and will amend certain regulations to facilitate new and existing listings.
“The market has experienced several significant events since the end of last year. Not surprisingly, the Thai capital market will undergo various changes, resulting from amendments to regulations and the law, brokerage fee liberalization, and political and economic conditions locally and abroad.
“Increasing the proportion of institutional investors will help stabilize the market, with local institutions being the Exchange’s main target. SET aims to attract more foreign institutions also through direct communication, information projects and road shows. As we move through these changes, the bourse will collaborate with securities firms, listed companies and related public and private organizations,” SET President Ms. Patareeya Benjapolchai said.
In 2007, SET will introduce DMA (direct market access) to facilitate institutional trade, a more comprehensive database integrating all the market’s investment instruments, and continue to promote corporate governance (CG). The Exchange aims to increase listed companies’ average CG scores to 75/100 for shareholders’ rights, and 64/100 for directors’ responsibilities, by 2009.
The SET board also approved providing more communication channels for investors and increasing direct access to investment through the ‘cyber branches’ initiative in conjunction with commercial banks and securities’ firms - 30 branches by 2007, and 120 by 2009.
“To help current and future listed firms, SET, with other related organizations, will resolve issues, such as reducing the procedures and time involved in listing, removing obstacles to product innovation, supporting tax privileges for listed companies, and following up legal issues,” Ms. Patareeya said.
In addition, the board approved two new educational projects for this year. One is for universities using investment simulation, giving students and staff hands-on experience. The other is to build an integrated center for financial and investment learning, based on the successful Maruey Knowledge & Resource Center model. The bourse plans to build the center in Q2/2007 in Bangkok.
