The changes allow for greater flexibility when customers request a member company to sell securities for them. The amendment enables the member company to pay the funds arising from the sale to the customer “by” the third business day following the sale, instead of “on” the third day, which was the previous arrangement. However, the change will be limited to big-lot cash transactions worth THB50 million and over, and which are completed on a gross settlement basis.
The arrangement can be executed only on behalf of a customer, not a member company, and requires the prior approval of the member company’s president or their delegate. Afterwards, the member company must report all relevant transactions on a gross settlement basis.
“The amendment of SET’s “Rules and Procedures Relating to Securities Trading in Cash” is consistent with current clearing and settlement practice. It gives greater flexibility to members, allowing them to clear and settle their transactions sooner than the T+3 period,” said Mr. Suthichai.
