The Securities and Exchange Commission (SEC) is lifting the maximum amount of security-based crowdfunding offerings to 50 million baht for retail investors, from 40 million baht, with no limit for institutional, high-net-worth and ultra-high-net worth investors.
The SEC has revised the rules regarding the offering of securities through the crowdfunding system to promote the funding of startups and small and medium-sized enterprises in a consistent manner, the regulator said in a statement on Monday.
The new rules, which took effect on July 16, also improve the supervision of securities offerings through the crowdfunding system and funding portal to be clearer, more appropriate and efficient, the SEC added.
The maximum crowdfunding amount which companies can offer retail investors is now 50 million baht, up from 40 million baht, for all of their securities.
There is no limit for the amount they can offer to institutional, high-net-worth and ultra-high-net-worth investors. Besides, these investors are not required to take a knowledge test before subscribing to crowdfunding securities, the SEC noted.
Under the new rules, the definition of institutional investors related to crowdfunding has been expanded to include private equity, venture capital, angel fund investors and other investment professionals.
Meanwhile, funding portal users that wish to renew their approval can submit an application at least 60 days in advance before their current licence expires.
Finally, funding portals have to inform the SEC in case of any change in qualifications or performance of duties within the specified period. This could involve a funding portal wanting to suspend its duties, or that they are unable to maintain qualifications as specified by the rules, or there are changes in people holding positions or performing duties, such as directors and managers, the regulator said.