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Individual investors will be required to conduct purchase/sale clearing through banks’ automated transfer system (ATS) from April 1, 2007. This was brought into effect by The Stock Exchange of Thailand (SET)’s Board of Governors amending the rule concerning securities trading in cash. The change should help investors clear their sale/purchase of securities more conveniently, reduce possible default risk, and prepare the market for T+2 clearing and settlement in the future.
The amendment does not apply to institutions or juristic persons, SET Executive Vice President Mr. Suthichai Chitvanich (acting as the SET Board Secretary) stated.
“Using ATS, individual investors can settle their transactions more conveniently, as they do not need to be involved with cheque payments or cashing-in. They can receive profits from sales and pay for purchases through bank accounts with no service charges,” Mr. Suthichai added.
Since November 1, 2005, SET member companies have been required to have new individual clients settle through ATS.
