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The Stock Exchange of Thailand (SET) held a seminar on “Sponsor-based listing process – the move forward for capital markets,” aiming at exchanging viewpoints among related parties in the Thai and Asian capital markets. The seminar was to prepare for sponsor-supervised regulation listing, using disclosure-based principles, to support entrepreneurs with high growth potential to raise funds through the capital market and develop the Thai capital market’s international competitiveness.
“Many regional exchanges --e.g., Australia, China, Japan, Malaysia and Singapore -- are providing listing under sponsor-supervised regulation, since this method is quicker and more convenient. SET and related parties are studying and preparing to adapt sponsor-supervised regulation to the Thai capital market to ensure its success and enhance Thai capital market’s international competitiveness. This process will also support the Thai capital market’s mechanism to work properly, including strengthening capital market’s professionals, e.g., financial advisor, securities analysts, auditors, and supporting firms to effectively disclose information,” said SET Group Head, Issuer & Listing Chanitr Charnchainarong.
Sponsor-supervised regulation requires that financial advisors consider and certify their client company’s qualifications, so that investors can decide based on the disclosed information. Sponsor-based listing increases alternatives for investors and provides opportunity for entrepreneurs to raise funds more conveniently. This listing method has been a success in many exchanges in the region, including ChiNext in China, opened just a year ago, yet having 141 listed firms, with a market capitalization of THB3.2 trillion (approx. USD106.66 billion). Singapore’s Catalist, now has 131 listed firms, with a market capitalization of THB120 billion (approx. USD4.00 billion). Utilizing this open and flexible regulation process, many exchanges have successfully invited foreign companies to list.
The SET, Securities and Exchange Commission (SEC) and other related sectors have prepared for this disclosure-based system since 2009, and this November 19, the SEC’s Thai Capital Market Committee approved disclosure-based principles in listing regulations, which is expected to be effective in 2011 onwards. The SET will work with the Thai Investors Association and related sectors to prepare investors.
The seminar “Sponsor-based listing process-the move forward for capital markets” was a stage for related parties to exchange information and learn from overseas experiences. Speakers included Mr. Arulnathan Michael Dass, from Bursa Malaysia Berhad, on changing their MESDAQ into the ACE Market; Ms. Xiaojing Wu, of ChiNext Corporate Disclosure Department, Shenzhen Stock Exchange, on the success of ChiNext on joint-venture investment; Mr. Tetsutaro Muraki, President & CEO of Tokyo AIM, on the Tokyo AIM, a new market resulting from the cooperation between Tokyo Stock Exchange and AIM of London Stock Exchange, and a market that facilitates foreign companies in listing.
The session also joined by specialists in the Thai capital market, who exchanged viewpoints on the readiness of the Thai capital market in applying sponsor-supervised regulation.
