The Stock Exchange of Thailand (SET) is asking Jaymart Plc about its draft white paper detailing the company's JFin initial coin offering (ICO) in an attempt to equip investors with in-depth details before they make an investment decision.
The bourse is asking whether the white paper is a draft or final version, as a draft would allow for the ICO details being altered at a later stage, said SET president Kesara Manchusree.
"If the details [in the white paper] are finalised, then there will not be an issue. Our inquiry aims to clarify information for investors to support their decisions," said Mrs Kesara.
"Whether increasing capital or raising funds, this is important information that listed firms have to disclose to the public because it could affect companies' valuation."
The white paper is similar to an initial public offering prospectus that offers stocks to investors and brings shares to list on a stock exchange. An ICO white paper comprises the project's objectives, business model and business plan, use of proceeds, business milestones, legal risks, digital token functions, sales and mechanisms of digital tokens, management and advisory.
SET-listed mobile distributor Jaymart recently insisted it will move ahead with selling its JFin digital tokens through an ICO as scheduled, with company officials voicing confidence its plan will comply with soon-to-be-issued regulations.
Jaymart, through its subsidiary J Ventures, aims to acquire 660 million baht for its first-phase ICO of 100 million coins at a price of US$0.20 (6.60 baht) per coin, intending to use the funds to develop a decentralised digital lending platform with blockchain technology.
J Ventures will do a presale offering from Feb 14-28 with a 5% discount offer. The official ICO timeline for interested parties is March 1-31.
Blockchain technology, including the issue of tokens and their usage, is a brand new concept and current regulations may not cover every aspect of this emerging technology, said the JFin white paper.
"As a result, the introduction of new regulations regarding blockchain technology may occur, potentially conflicting with the JFin smart contract set-up. This may result in changes to the JFin smart contract, including but not limited to the loss of JFin tokens," said the white paper.
The Securities and Exchange Commission is in the process of drafting and implementing regulations associated with ICOs. When the regulations are enforced, the JFin ICO plans to comply with them, said the white paper.
Regarding the value of JFin coin, it may vary based on, but not limited to, supply and demand of services, judgements about its future economic, competitiveness and market conditions, as well as business decisions, said the white paper.
In separate news, the SET and other stakeholders in the capital market plan to launch a two-day clearing and settlement cycle (T+2) on March 2.
This new settlement cycle can reduce settlement risk by 30% from the current T+3, which will no longer be used after Feb 28.