SET board approves changes

The Stock Exchange of Thailand's board of governors yesterday approved the relaxation of listing requirements as part of its effort to sharpen the bourse's competitive edge.

The minimum market capitalisation of applicants for listing on the Market for Alternative Investment was lowered from Bt1.5 billion to Bt1 billion, SET executive vice president Suthichai Chitvanich said.

The shareholding ratio of small investors in companies with paid-up capital exceeding Bt3 billion was reduced from 25 per cent to 20 per cent.

The SET will use normalised profit for consideration of listing applicants instead of their net profit.

The silent period for major shareholders was shortened from one year and a half, to only one year, and the silent share proportion was cut from 65 per cent to 55 per cent.

The SET was allowed to consider softening standards governing listed company size, paid-up capital, financial results and retail investors' holdings.

However, to be transparent, it will set up a five-member panel drawn from the Securities Analysts Association, the Association of Investment Management Companies, the Thai Investors Association and the Listed Companies Association, with the SET president as the other member.

The new standards need the endorsement of the Securities and Exchange Commission.

The proposal came from a task force established by the SET late last year to review regulations that discourage companies from listing on the local exchange. Concerns started mounting after some firms chose to delist and others raised funds from offshore markets.

The board also approved the launch of the country's second exchange-traded fund, with the energy sector as the underlying asset, to broaden alternatives for investors.

The fund will start with capital of at least Bt300 million, of which Bt10 million will be put up by the SET, he said.

Siriporn     Chanjindamanee

 The Nation