SEC approves exchange privatisation

 Thirachai Phuvanatnaranubala, secretary-general of the SEC, said after the board meeting that the privatisation would boost the long-term competitiveness of the exchange. As a private organisation, it would need to increase efficiency.

 The process requires the amendments in the securities laws.

 A privatisation committee, comprising representatives from the private and public sectors, would be set up to propose the privatisation plan to turn the SET to Exchange Company (Exco). The plan would then be forwarded to the SEC board and the Finance Ministry. Foreign shareholding limit in Exco would be limited at 49 per cent, unless revised by the SEC board. The board would monitor the listing Exco on the exchange and audit the new entity.

 The Capital Market Development Fund (CMDF) will be set up to promote and develop the securities industry and the capital market in the long term.

 Meanwhile, the exchange operations and settlements services would be liberalised, paving way for new competition.

 "The SEC will present the proposed legal amendments to the Finance Ministry and will host a public hearing," Thirachai said.