The Stock Exchange of Thailand's new board of governors is expected to be officially announced in early August, with four governors elected by the Association of Securities Companies (Asco) to be unveiled next Wednesday.
Under the new Securities and Exchange Act, the SET's board of governors will comprise six appointees of the Securities and Exchange Commission (SEC), four members elected by brokerage firms and a de facto position held by the SET president.
This is a change from the existing structure in which five governors were appointed by the SEC and five elected by brokerage firms.
Each member will have a three-year tenure and five members will be required to draw lots to relinquish their positions upon becoming members of the SET's board of governors for one-and-a-half years, reported efinancethai.com.
The amended act also stipulates that a maximum of two qualified non-Thai nationals could become members.
Existing members will have to relinquish their positions once the new governors are selected.
The amendment aims to enhance market development and balance human resource allocation from other areas, since the stock market is associated with many organisations, investor groups and capital market experts, said SEC assistant secretary-general Sakkarin Ruamrungsri.
The move also helps the bourse maintain independence and credibility, Mr Sakkarin said.
There have been more than 70 applicants from organisations operating in the capital market. The nomination committee will narrow the pool down to 12 applicants.
The SEC's board of directors will then select six qualified people from the 12 candidates.
The director of the Capital Market Development Fund will be appointed as one of the new governors, Mr Sakkarin said.
The SET's new board of governors will be officially announced on Aug 1, he said.
Founded in 1975, the SET has come to lead trading liquidity in Southeast Asia in the past five years. The bourse's market capitalisation is about 17 trillion baht, with average daily turnover worth 40-50 billion baht.
Asco chairwoman Pattera Dilokrungthirapop said the association will have a meeting to elect four qualified candidates from brokerage firms that are Asco members to become the bourse's new governors.
"We hope the SET's new board of governors will blend their past experiences with new technology for market development and sustainable long-term growth, as the bourse will face challenges stemming from technology disruption and fierce competition from stock markets worldwide," Mrs Pattera said.
One of the challenges is using technology to educate Thais in investment knowledge, she said.
There are many financial products catering to investors' risk appetite, but people either find it difficult to obtain investment information or lack understanding of investment risks, Mrs Pattera said.