Investment firms face ban on raising SET and MAI funds


The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) intend to prohibit investment management companies from raising funds on the SET and the Alternative Investments Market (MAI) in order to fill gaps. regulatory loopholes and strengthen investor protection.

The SEC is holding a public hearing to gather opinions on the new regulations. The hearing ends on August 18.

Under the new guidelines, any investment management company, except financial institutions, will be prohibited from offering and listing shares on the SET and MAI.

According to the SEC, an investment firm refers to any company that invests more than 40% of its assets in securities, derivatives, or digital assets without actively managing those assets.

However, exceptions include investments to manage cash in low-risk assets, investments in an associated company that is not an investment company, and investments in an affiliated company belonging to the same holding company or partner companies that are networked for business operations, cooperation, and synergy, including companies belonging to the same value chain.

All companies listed on the SET or MAI with a passive investment of more than 40% of total assets must disclose information regarding these investments in the notes to their financial statements.

The SET plans to stipulate additional measures to ensure that listed companies comply with the new guidelines.

The SET plans to attach trading warning signs to companies that fall under the SEC’s definition of an investment management firm and set a deadline for corrective action.

If the companies do not act within the time limit, they will lose their listed status and be delisted from secondary exchanges.

After being delisted, a company will not be permitted to offer any type of security under the Securities and Exchange Act to investors or the general public unless it has obtained a waiver from the SEC.

The SEC and SET have posted hearing documents on their websites.

Interested persons can submit their opinions on the websites or via email — [email protected] or [email protected] — until August 18.


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