Who is "Securities Broker / Dealer"?

Under Section 4 of the Securities and Exchange Act B.E. 2535 (the SEA), a "securities broker" is "a person representing another in the purchase, sale or exchange of securities in the normal course of business for a commission, fee, or any other form of consideration". Thus, in this context, any person holding himself/herself out that he/she engages in the business of soliciting and executing securities transactions for the account of others is clearly a broker.

Concurrently, a "securities dealer" is "a person conducting the purchase, sale or exchange of securities, outside a securities exchange or an over-the-counter centre, for his/her own account in the normal course of business". Thus, in this context, any person holding himself/herself out that he/she engages in the business of soliciting and executing securities transactions for his/her own account, outside a securities exchange or an over-the-counter centre is clearly a dealer.

In addition, under Section 90 of the Act, the securities business mentioned above can be undertaken only after a limited company or a public limited company or a financial institution established in accordance with other laws has obtained a license from the Minister of Finance upon the SEC’s recommendation.

 Any person operating securities business without a license shall be liable to imprisonment for a term of 2 to 5 years, a fine from Bt200,000 to Bt500,000 and a daily fine.

 For more details and inquiries, please call the SEC Information Center at 66-2695-9999 or e-mail: seccom@sec.or.th