The Securities and Exchange Commission (SEC) will soon require companies from some neighbouring markets wanting to list on the Stock Exchange of Thailand to have minimum capital of 2 billion baht.
The neighbouring markets are Cambodia, Laos, Myanmar and Vietnam.
The requirement is part of regulations governing foreign equity offerings for both primary and dual listings as well as sales of depositary receipts (DRs) on foreign securities.
The rules are in the drafting process and should be announced in the next two months, SEC assistant secretary-general Prakit Punyashthiti said yesterday.
They are part of a strategic plan by the SEC to expand the offerings of financial products and services for investors.
The SEC and SET are trying to make the Thai capital market the fund-raising centre of the Greater Mekong Subregion (GMS) before Southeast Asia's integrated market takes shape late this year.
The neighbouring markets fall within the GMS.
Mr Prakit said the regulations would put an emphasis on information disclosure and ensure an appropriate level of investor protection.
Foreign firms intending to raise funds in Thailand will be subject to approvals and other relevant regulations applied to Thai companies.
Moreover, certain rules will be added — for example, corporate laws governing foreign companies must be comparable with Thai law, especially such material issues as shareholder rights.
In the case of DRs, their underlying assets must be either securities or units of exchange-traded funds listed on major exchanges.
Mr Prakit said the SEC would require Thai financial advisers to monitor Chinese companies listed on the Thai stock market for three years.
"It is the first time that China's securities regulatory commission flew to talk to us, meaning Chinese firms need to raise funds and they see growth opportunity in this region," Mr Prakit said.
"The SET now has high liquidity and trades at a high price-to-earnings ratio, which could benefit issuers."