By virtue of Section 7 and the fourth paragraph of Section 90 the Securities and Exchange Act B.E. 2535 which is an Act containing provisions in relation to restrictions of rights and liberties of persons, in respect of which Section 29 in conjunction with Sections, 35,36,45,48 and 50 of the Constitution of the Kingdom of Thailand allow to be done by provisions of law, Finance Minister issues regulations as follows:
Clause 1 Person eligible to apply for securities business license in the category of brokerage, dealing or underwriting of investment units shall be any of the followings:
(1) commercial bank under law on commercial banking;
(2) finance company under law on undertakings of finance business, securities business and credit foncier business;
(3) securities company under law on securities and exchange;
(4) life insurance company under law on life insurance;
(5) any other financial institution as specified in the SEC’s Notification.
Clause 2 Person eligible to obtain securities business licenses in any or all of the categories specified under this Ministerial Regulation shall-
(1) be able to maintain capital funds and set aside reserve capital in accordance with law controlling business undertaking of such legal entity;
(2) not have financial condition that is likely to cause damage, any other circumstances that show its financial hardship, any deficiency or inappropriateness regarding control and sound business conduct;
(3) have executives appointed by board of directors of company or financial institution as the highest rank persons with managerial authority who are capable of management, ethical, honest, understand and responsible for business undertaking;
(4) determine clear scope of authority and responsibility of executives and units;
(5) be able to show that its operational system will be prompt for operating securities business in the applying category;
(6) be able to show that its human resource will be prompt and adequate with a view to responsibility for undertaking of securities business in the applying category.
Clause 3 Person intending to apply for securities business license under this Ministerial Regulation shall file an application with the SEC Office, in form and attached with supplementary documents as specified by the SEC’s Notification.
Clause 4 In connection with applying for securities business license under this Ministerial Regulation, the competent officer shall, upon the applicant’s consent, enter into the applicant’s place of business or premises or any place necessary for inspecting the applicant’s financial condition, business operation, assets or any relevant data.
Clause 5 In case where the SEC is of the view that the applicant has qualifications as specified in this Ministerial Regulation, the SEC shall recommend the Minister to make consideration to issue securities business license within sixty days from the date on which the SEC Office receives complete application and supplementary documents. The Minister shall complete his consideration within thirty days from the date of receiving the SEC’s recommendation.
In issuing securities business license under this Ministerial Regulation, the following conditions shall be determined:
(1) the SEC Office shall deliver securities business license to the licensee, provided however that the licensee shall commence securities business operation after the SEC Office, having completed its inspection, is of the view that the licensee has already provided arrangements for its operational system, human resources and working capital promptly for operating securities business in the licensed category as demonstrated in Clause 2, differences from which may be disregarded if concern with procedures which do not affect material change in
(2) the licensee shall have qualifications as specified in this Ministerial Regulation throughout license period. In case where the licensee has disqualified characters, the Minister may revoke such license.
Securities business license under this Ministerial Regulation shall be in form specified in the SEC’s Notification.
Clause 6 When the Minister grants his approval for the licensee under this Ministerial Regulation to commence securities business operation, the SEC Office shall notify the licensee of such order and conditions under Sub- clause (1) in the second paragraph of Clause 5 within seven days from the date on which such approval is acknowledged. The licensee shall comply with such conditions and notify the SEC Office to proceed with inspection within ninety days from the date on which such approval is acknowledged. If the licensee fails to comply therewith within the specified period, the SEC shall recommend the Minister to revoke his approval.
Clause 7 Fees shall be prescribed as follows:
(1) application for securities business license in the category of brokerage, dealing or underwriting of investment units Baht 10,000 per category;
(2) securities business license in the category of brokerage, dealing or underwriting of investment units Baht 10,000 per category
The licensee shall pay fee for securities business license on the date of obtaining the license.
Given on the date of 23rd January B.E. 2547
Captain Suchart Jaovisidha
This English version is prepared by Legal Department with the sole purpose of facilitating the comprehension of foreign participants in the SEC’s rules and regulations and shall not in any event be construed or interpreted as having effect in substitution for or supplementary to the Thai version thereof.
Please note that the translation has not been subjected to an official review by the SEC Office. The SEC Office, accordingly, cannot undertake any responsibility for its accuracy,nor be held liable for any loss or damages arising out of or in connection with its use.