The government has committed to revising investment regulations in the stock market to help stimulate Thailand's capital market.
In a keynote speech delivered at an investment seminar held on Monday, Finance Minister Pichai Chunhavajira said the government has to unlock some of the investment restrictions imposed by the Securities and Exchange Commission (SEC).
For example, he said life insurance companies are currently allowed to invest very little in the stock market, while certain funds that have hundreds of billions of baht in assets are only permitted to invest in government bonds.
He added that it is also necessary to amend the rules regarding treasury stocks to make it easier for businesses to engage in such practices.
Mr Pichai also referred to the SEC's ongoing regulatory amendments aimed at building trust and confidence, noting that the organisation has amended laws related to naked short selling, making it subject to both civil and criminal penalties. He also referred to programme trading, which must be normalised to ensure fairness.
Regarding the SEC's authority to file lawsuits related to market offences, Mr Pichai said a new draft law is being developed to grant it the authority to submit cases to the prosecutor in major cases. Currently discussions are underway on whether the SEC should have independent investigative powers or share investigative authority with the police.
He also spoke about digital assets, noting that there is currently both a Royal Decree on Digital Assets and the Securities and Exchange Act in place, while investors in both markets tend to belong to the same group.
Mr Pichai added that the government is also promoting the issuance of G-Tokens, allowing retail investors to access government bonds. These tokens can be purchased in units with up to six decimal places. Investing in G-Tokens is expected to yield better returns than bank deposits. Additionally, issuing G-Tokens will help increase global awareness of Thai government bonds, he said.
Regarding cryptocurrency, Mr Pichai said in some countries it is permitted to use cryptocurrency for purchasing goods, while in others it is linked to credit cards. Credit card companies then exchange cryptocurrency via platforms such as Bitcoin exchanges and others, while sellers receive local currency.
However, in Thailand this practice is not yet permitted. Nonetheless, there may be considerations to link cryptocurrency with certain services, but it would be done under strict conditions, he said.