The Securities and Exchange Commission (SEC) on Wednesday announced new regulatory reporting requirements for holders of securities and derivatives, expanding the scope of the reporting and securities categories.
The move is aimed at providing investors with clear information and enabling them to better track the movement of securities held by those involved with listed companies, the SEC said in a release.
The latest regulatory adjustment is in line with how the Securities Act of 2016 has broadened the scope of reporting for securities holding and mandatory reporting requirements, the commission said.
Those who are required to report their securities and derivative holdings include directors, executives and auditors. For listed companies undergoing business rehabilitation plans, this covers temporary executives, business rehabilitation planners, plan administrators and temporary plan administrators.
The reports made by these classified individuals have to include their spouse or partner living together as husband and wife, minors and juristic persons, where total shareholding of these classified persons is above 30% of total voting rights and have the largest shareholding portion in a juristic person.
For securities and derivatives required for reporting, these include equities, convertible debentures, derivative bonds, warrants to purchase securities, transferable subscription rights, derivative warrants, single stock futures and non-voting depository receipts.
The reports need to be completed within three working days, starting from the date of purchase, sales, transfer or assigned transfer of securities and derivatives. Reporting has to be done online from Aug 15.
Newly appointed directors and executives who do not have their names publicised on the board of directors can notify the SEC about their securities and derivative holdings within seven working days.
The SEC allows those who need to submit their securities holdings report to file Form 59 as a hard copy between Aug 15 and Nov 15, which has been outlined as a transitional period from hard copies to online document submission.
"The adjusted reporting criteria will allow investors to efficiently monitor the movements of securities held by those involved with listed companies. This is because these individuals are closely associated with listed companies and have access to important information through their authority before the general public," said SEC deputy secretary-general Prakid Punyashthiti.
SEC secretary-general Rapee Sucharitakul said the market regulator's move to adjust the reporting requirements is aimed at enhancing transparency of asset holdings for those involved with listed companies.
Investors' investment position in the futures market correlates with share price movements in the Stock Exchange of Thailand index, resulting in investors forecasting share price movements by holding futures contracts in specific shares, Mr Rapee said.
Separately, around 52 institutional investors have signed the Investment Governance Code 2017 (I Code), which outlines governance principles and investment guidances that reflect existing international standards and best practices for responsible and effective stewardship over investments by institutional investors.
Most institutional investors that have pledged their principles to the I Code consist of mutual asset management firms, the Thai Investors Association, the Government Pension and provident funds, Mr Rapee said.
Other institutional investors that have yet to join the I Code include insurance and life assurance companies, long-term equity funds and retirement mutual funds, he said.