Bangkok, 30 April 2019 – The SEC has issued new rules on paid-up registered capital of securities intermediaries to better suit business nature and risk levels, reduce their operating burdens and support development of new business models to meet investors’ demands. The new rules will take effect on 16 May 2019.
While all securities companies were
required to have paid-up registered capital at the same amount of 100 million
baht, the new rules require that applicants and licensees of all types of
securities business, including securities dealing, securities underwriting,
proprietary investment and securities custody, have paid-up registered capital at
the following different amounts:
(1) 100 million baht
for undertaking securities business with the obligation towards clearing and
settlement system;
(2)
25 million baht for
undertaking securities business with custody of clients’ assets;
(3) 25 million baht for undertaking
securities business in the category of mutual fund management or private fund
management to provide services for non-institutional investors;
(4) 10 million baht for
undertaking securities business in the category of mutual fund management or
private fund management to provide services for institutional investors only.
(5) 1 million baht for undertaking other
securities businesses.
SEC Assistant Secretary-General Paralee
Sukonthaman said: “Setting an appropriate amount of paid-up registered capital by
taking into account the nature of business and associated risks can lighten the
burdens of intermediaries, especially small-sized securities companies or types
of businesses which do not need large amount of capital. These new rules can
also support development of new business models to better respond to investors’
demands.”
The
new paid-up registered capital rules serve as initial capital requirement for
those intending to operate a securities business. Once the business operation
begins, the licensees must also maintain on-going capital suitable for their
risk level in compliance with the governing rules.