SET Executive Vice President Ms. Sopawadee Lertmanaschai revealed that the Securities and Exchange Commission’s (SEC) board has already approved the new listing requirements for The Stock Exchange of Thailand (SET) and the Market for Alternative Investment (mai). The requirements on capital, shareholders’ equity, and profits have been adjusted so that they better clearly differentiate between the SET and the mai.
“The new listing requirements will apply to companies submitting their listing applications from January 1, 2005, onwards. Nevertheless, as there are many companies already in the process of listing, the current listing requirements, as well as silent period rules, will still apply providing that they commence trading by December 31, 2005. The SET has notified all the financial advisory firms about these changes and have asked them to state their intentions to the SET by November 30, 2004,” Ms. Sopawadee said.
“Companies commencing trading by December 31, 2005 under the new listing requirements will gain tax privileges in accordance with the size of their paid-up capital. The firms listed on the mai with less than THB300 mln. of paid up capital will be subject to a 20% corporate tax rate. However, SET- or mai-listed companies with paid-up capital equal to or more than THB300 mln. will be required to pay a 25% corporate tax rate. This is aimed at providing greater tax privileges to the smaller companies rather than the larger ones.
Ms. Sopawadee added that: “mai-listed companies that wish to move to the SET may do so on a voluntary basis. Nevertheless, they must meet all the SET’s requirements on, for example, their paid-up capital, shareholders’ equity, operational performance, and net profits.”
Under the new listing rules, the requirements prohibiting management and shareholders, including their related persons, from selling shares and securities during a specified period (“silent period”) have also been amended. People who are subject to the silent period rule are now only the strategic shareholders, who will be prohibited from selling their shares and securities equivalent to at least 65% of the firm’s paid up capital after its initial public offering for the period of one and a half years. After the first six months of the silent period has ended, they will be permitted to sell a maximum of 25% of their locked-up shares every six months.
