Brokerages, commercial banks and foreign bank branches in Thailand would serve as issuers of TCRs, in which foreign securities are the underlying assets, according to the securities watchdog's statement. TCRs, which would be allocated to the public, would be tradeable on the Stock Exchange of Thailand (SET).

TCRs would offer an opportunity to local savers to diversify their risks, increase products in the Thai stock market and widen sources of income to local brokerage houses, the statement said.

The statement added that it was easy for government authorities to control capital outflows and their impact on foreign exchange rates if investment was made through TCRs. The SEC will discuss the issue with the SET and the Bank of Thailand.

Additionally, the board has resolved to consider allowing allow foreign corporations to raise funds by listing stocks on the Thai bourses in order to raise the role of the local market in the region.

The securities watchdog will discuss restrictions and regulations with the central bank, the statement added.

Siriporn Chanjindamanee

 The Nation