Thailand

Market surveillance of the securities market is conducted by the Stock Exchange of Thailand (SET), which is in turn supervised by the Securities and Exchange Commission (SEC). The Bank of Thailand (BoT) supervises the banks and finance companies. Ultimately, the Ministry of Finance (MoF) supervises all aspects of the Thai financial markets.

Stock Exchange of Thailand (SET): The SET lays down regulations and guidelines for brokers’ conduct and responsibilities and can impose fines and suspension in case these are flouted. There are longer term plans to make the SET a public company in the future. The SET has systems to track and investigate malpractices such as insider trading. After initial monitoring, it would pass on its findings to the SEC for legal action. The SET’s stock watch and surveillance system can detect any irregular patterns of price and volume movements. The computerized system is closely watched by trained analysts.

Securities and Exchange Commission (SEC): The SEC focuses mainly on primary market supervision, and leaves the SET to do day-to-day supervision and surveillance of the secondary market. The SEC is headed by the Finance Ministers and its board of directors includes five to six other members including the governor of the BoT. The SEC regulates the equities as well as the bonds market. The main piece of securities regulation is the Securities Exchange Act (SEA) of 1992. Under the SEA, the SEC is also responsible for regulating the primary market. A company wishing to issue new securities or offer more securities to the public must first obtain the SEC’s approval and comply with its filing requirements. The SEC is required to carefully review the financial status and operations of the company before allowing the firm to issue securities to the public.

Ministry of Finance (MoF): The MoF regulates every aspect of Thailand banking and financial services industry, but it delegates routine supervision and administration of the securities market to the SEC, and that of the banking sector to the central bank the BoT.

The Bank of Thailand (BoT): supervises the banks and finance companies under the Banking Act of 1962 and the Act on the Undertaking of Finance, Securities and Credit Business of 1979.