The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) have signed a memorandum of understanding (MoU) to enhance joint supervision of the capital market and improve operational efficiency according to each organisation's legal and regulatory framework.
This collaboration underscores both organisations' commitment to ensuring an orderly, fair and reliable capital market, fostering investor confidence and promoting sustainable growth that will benefit the economy, noted the SEC.
According to Pornanong Budsaratragoon, secretary-general of the SEC, this MoU strengthens the framework for cooperation between organisations, clarifies supervisory roles, reduces duplication, aligns with capital market conditions and enhances support for future trends.
The SEC and SET will work together across four main areas, comprising supervision of initial public offerings, listed companies, securities business operators and SET members.
Other areas include monitoring of trading activities of listed securities, enforcing relevant laws and issuing SET regulations and rules.
The two organisations also plan to share supervisory information to enhance operational efficiency, including joint reviews of indirect listing requests (backdoor listings) and requests to resume trading of listed companies after revocation (resume trading). The cooperation is meant to ensure these processes meet the same standards as those applied to new listings.
The SEC and SET want to work together to establish or refine regulations deemed insufficient at preventing or addressing behaviours that could lead to unfair trading practices on the bourse.
Both organisations have discussed creating an ecosystem and electronic securities to support the development of new forms of investment, which are being revised under the Securities and Exchange Act.
The duo also support value enhancement for listed companies, encouraging them to communicate with investors, in addition to government support for expanding the list of securities for Thai ESG fund investment.
According to Mrs Pornanong, both organisations are working to promote the disclosure of sustainability information in line with the International Sustainability Standards Board, which the SEC is preparing, requesting the SET support the standards, develop operations and create understanding with listed companies. Lastly, both organisations are committed to advancing capital market and financial sector open data initiatives, using information from business operators more efficiently.