SEC forming committee to monitor IPOs

SEC forming committee to monitor IPOs

Risk assessment will be provided to issuers

The SEC office on Vibhavadi Rangsit Road. Executives of listed firms could be punished through civil or criminal procedures if the committee finds evidence of fraud, says the SEC. WEERAWONG WONGPREEDEE
The SEC office on Vibhavadi Rangsit Road. Executives of listed firms could be punished through civil or criminal procedures if the committee finds evidence of fraud, says the SEC. WEERAWONG WONGPREEDEE

The Securities and Exchange Commission (SEC) plans to set up a committee with representatives from the accounting and analytics sectors to assess risks related to IPOs and listed companies.

The market regulator is planning to set up a steering committee with representatives from financial advisories, auditors, analysts, lawyers and businessmen to cohesively evaluate IPO deals, backdoor listings, or listed firms with risk-prone business strategies, said SEC deputy secretary-general Prakid Punyashthiti.

The results of the investigation will not be disclosed to the public, but will be forwarded to share issuers.

Some companies might not be eligible to list on the bourse if they have not passed the committee's assessment, said Mr Prakid.

Executives of listed firms could be punished through civil or criminal procedures if there is evidence fraud was committed, he said.

"The beefed up regulation aims to protect investors' interests," said Mr Prakid.

The Stock Exchange of Thailand (SET) also plans to use the caution symbol (C) for stocks that are considered a risk for investment, have received no opinion from an auditor on financial statements, or shareholders' equities are reduced to 50%.

The C sign is scheduled to become effective in May 2018.

Rapee: Working for stronger standards

The SEC will also supervise an initial coin public offering (ICO) hearing, for which regulations will focus on companies using ICOs to raise funds from the public, said SEC deputy secretary-general Tipsuda Thavaramara.

ICO issuers need to provide a white paper, comprising the project's objectives, business model and business plan, the use of proceeds, business milestones, legal risks, digital token functions, sales and mechanisms of digital tokens, management and advisory, for investors, said Mrs Tipsuda.

The ICO public hearing is scheduled for Jan 22 and the regulation is expected to become effective in this year's first quarter, she said.

"At present, there is no organisation that directly governs cryptocurrencies, but we cannot avoid this because trading activity is becoming larger day by day," said Mrs Tipsuda.

In a related development, the SEC has announced a three-year strategic plan (2018-2020), with a focus on provision of wealth advice for the long-term well-being of investors and the promotion of sustainable efficiency in all aspects of market development.

"In promoting effective supervision, the SEC continues to focus on three areas, namely regulatory discipline, self-discipline of companies and executives, and market forces," said SEC secretary-general Rapee Sucharitakul.

"In so doing, the SEC is cooperating with agencies and organisations, both public and private, to strengthen supervisory standards and common practice guidelines for listed and regulated companies.

"Additionally, the SEC will continue to promote alternative fundraising methods for small enterprises and startups that use technologies to manage costs on existing platforms, such as crowdfunding."

For this year's working plan, the SEC is in the process of amending the SEC Act, covering the restructuring of the SET's functions and capital market development, such as the Capital Market Development Fund, together with developing an electronic trading platform to serve digital trading demand, he said.

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