SET approves its listing plan

The Stock Exchange of Thailand's plan to demutualise and list in 2011 won backing from its board of governors yesterday.  "At present, only three to four stock markets have not demutualised yet. The demutualisation will help develop the country, add value to customers and allow companies to access a fund mobilisation channel," SET president Patareeya Benjapolchai said.

To prepare for demutualisation, the board endorsed the recommendation of Boston Consulting Group, the SET's adviser for demutualisation, to split the SET into the Capital Market Development Fund and the SET, she told reporters.

The Capital Market Development Fund would oversee Family Know-How or the CSR Institute, social and non-profit activities and investor education programmes, while the SET would take responsibility for stock and derivatives trading activities and brokerages.

The reorganisation would begin this year and be completed next year.

The SET has set a target of doubling its revenue from Bt2 billion to Bt4 billion and its market capitalisation from Bt6 trillion to Bt12 trillion by 2013.

At the end of the five-year period, 25 per cent of the SET's revenue must come from creating new products and 5 per cent of its market capitalisation from listing overseas companies.

Under this structure, trading fees would contribute 30 per cent to the SET's revenue, securities depository service fees 35 per cent, listing fees 10 per cent and other charges the rest.

According to the consultant's study, the SET's shareholders would include brokerages, the state and private investors.

A legal amendment was needed for the SET's proposed shareholding structure, and that was expected to be pushed through next year.

The SET's Bt17-billion capital fund would be allocated to the SET and the Capital Market Development Fund, but the ratio for each would be decided later, she said.