Tsd monolopy looks set to be broken

"Newcomers could be welcomed for securities deposit, withdrawal, clearing and registration to provide choices and improve service efficiency," a capital-market source said last week. TSD is now the sole central securities depository (CSD) in Thailand using a scrip-less system. The services provided by TSD are securities deposit, withdrawal, transfer, pledge and revocation. Investors can conduct transactions through depository participants.

According to the demutualisation plan for the Stock Exchange of Thailand, TSD would be spun off from the SET and placed under the Securities and Exchange Commission's (SEC) direct supervision, the source said.

Most CSDs overseas are overseen by stock exchanges, but some are under securities watchdogs like those in France and Canada where a number of CSDs are operational. Most of the CSDs in France and Canada are run by banks or large financial institutions.

The amended Securities and Exchange Act, effective since March 5, requires TSD to be under the SEC.

"The ownership issue must be cleared by spinning off TSD. The exchange is in the middle of the demutualisation process, while TSD is positioned as a profit-making unit. If the SEC allows new competitors, the Thai exchange would have troubles in making money after demutualisation," he said.

Last year, TSD generated Bt800 million in revenue, mostly from operating as the registrar for common and preferred shares, bonds, debentures, unit trusts, provident funds, retirement funds and long-term equity funds, as well as providing equity and bond scrip-less services.