The privatisation plan was raised by former SET president Vicharat Vichitvadakan during his tenure but was shelved after Kittiratt na Ranong took power, because he felt stock-market development might not progress following the SET's privatisation. In addition, Kittiratt at the time said that the SET had more than Bt10 billion funds and was not in need of fresh capital.

The source said the SET would have to spin off units concerned with development and transfer them to the Securities and Exchange Commission (SEC), in order to comply with the privatisation plan.

The privatisation has been added to the amended draft of the SEC Act, which is awaiting the Cabinet approval.

The same source said the topic had yet to pass a public hearing from related parties.

The source said there was a rumour that the issue had been discussed between SEC secretary-general Thirachai Phuvanat-naranubala and SET chairman Vijit Supinit.

Apart from SET listings, enforcement of corporate governance was included in the draft, said the source.

The source said that even though the SET had sent a letter to all listed companies informing them about the amended draft of the SEC Act, listed companies disagreed with the amendment, particularly the item concerning corporate governance.

It would be too restricting to enforce the corporate governance issue as law, because the Act could cover the issue, the same source added.

However, another source, this one at the SET, was unaware of the SET's privatisation plan in the SEC Act.

The same source admitted that the SET board of governors had been changed, by extending the chairman's term from two years to three, with a possible one-term extension.

Thus, under the new terms a chairman's tenure will be extended from four years to six, in case of renewal.

If the amended law takes effect, it would allow Vijit, whose second term will come due on July 31, to extend his term for another year.

Meanwhile, Vijit dismissed rumours he had already discussed the issue of SET privatisation with the SEC head.

He said the securities watchdog would consider the issue but that the SET was unaware of it.

"In the future, we'll have to follow this way," he said. "Privatisation will increase flexibility among stock markets in the region. Privatisation does not only mean listing in a stock market but also cross-holding. For instance, the Thai stock market might hold Singapore Exchange stocks and vice versa."