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| • EXCH RATES |
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Baht/$ 33.51/56
Bid/Ask
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GOLD |
14,350
+ 350
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NUNTAWUN POLKUAMDEE
Corporate governance in the Thai capital market is set to improve under a revised SEC Act that has called for significant changes in the role of market regulators and the importance of investor protection. The Securities and Exchange Commission board will no longer be chaired by the finance minister, but will instead be a full-time appointment. SEC directors will also be required to have experience in capital market issues.
Overall, the changes are aimed at strengthening the political independence of the SEC and ensuring that board appointees are genuinely qualified to sit in a position to set capital market policy.
Vijit Supinit, a former governor of the Bank of Thailand and chairman of the Stock Exchange of Thailand, was named earlier this year as the first new SEC chairman under the amended law. The SEC board and a new secretary-general will also be completely revamped by the second half of 2008.
For listed companies, the new law increases the responsibilities firms, directors and executives have in complying with good corporate governance practices. Companies must now appoint a company secretary to be legally responsible for key documentation such as the minutes of shareholders' meetings.
The Stock Exchange of Thailand meanwhile announced in the first half of 2008 that it was considering demutualisation within the next few years to improve its competitiveness in the global financial markets.
Demutualisation would transform the SET's ownership structure from a quasi-public organisation to a public company.
The Boston Consulting Group was mandated to prepare a study of demutualisation options for the exchange, including issues on the distribution of shares and the roles and responsibilities of the SET.
The SET has indicated that programmes such as investor education and marketing initiatives should be turned over to a new Capital Market Development Fund responsible for financing and overseeing public service initiatives.
The first half also saw further progress in plans to facilitate cross-border investment. Six Asean countries _ Thailand, Malaysia, Indonesia, the Philippines, Vietnam and Singapore _ agreed to establish an Asian board, comprised of the largest stocks listed on each individual market.
Eventually, investors in each of the countries can buy and sell securities listed on a different market through the Asian board. SET officials expect details such as clearing and settlement to be finalised in 2009.
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