Thai regulator consults on major reg changes

Thailand’s Securities Exchange Commission is seeking public feedback on a number of changes to the rules having to do with initial public offerings, and the approval processes for so-called private funds (PFs) and derivatives funds (DFs).

The SEC said the changes to the IPO rules are intended to prevent “disproportionate share allocation to patrons and related persons of the issuing company” that would allow them to control IPO volume and cause subsequent “irregular trading”.

The changes would redefine of the term “patron” to make it more inclusive, and would “limit the collective shareholding of all patrons and related persons up to 25 percent of the IPO shares sold”, the SEC said in a statement outlining the proposed changes.

They would also shorten the deadline for the IPO post-offering report to seven business days from 45, and extend the prohibition period for share offering below the offer price to specific persons to 180 days before the filing date of the IPO application, from its current 90 days before the offer date.

The deadline for submissions on these proposed changes is 14 March.

Private funds, derivatives funds

Regarding the approval processes for PFs and DFs, the proposed amendments include changing the criteria for granting a general approval for individuals who have been ready to perform the duties of PF/DF marketing agents.

They also include a relaxation of work system requirements to focus only on those essential for duty performance of PF/DF marketing agents.

Finally, the proposed amendments include making it compulsory to seek a clients’ consent before disclosing their personal information.

The deadline for those interested in submitting comments on these proposed changes is 2 March.

ABOUT THE AUTHOR
James Fernyhough
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