The CMSB has amended the regulations for granting general approval of registered capital reduction for business operators on the condition that such reduction meets all specified criteria, including no impacts on the shareholders’ structure, no impacts on the shareholders’ equity and no violation of relevant regulations. Previously, the SEC found that applications for registered capital reduction of securities companies in many cases did not meet the criteria for granting general approval for registered capital reduction. Additionally, there were no criteria for granting general approval of registered capital reduction for derivatives business operators.*

To provide securities and derivatives business operators with greater convenience for general approval of registered capital reduction and to align the criteria for securities companies and derivatives business operators consistently, the CMSB, in its meeting in March 2024, resolved to amend the general approval rules for registered capital reduction, with the key points as follows: (1) in cases where a capital reduction occurs while a business operator is subject to temporary suspension for all types of licenses for at least one year, or during the return of all licenses, or (2) in cases other than (1), where a capital reduction pertains to excess capital reduction that becomes unnecessary for business operations. In any case, it must be demonstrated that after the capital reduction, the business operator is still able to operate continuously, with sufficient capital reserves, and has a stable and appropriate future business plan in place. Additionally, the capital reduction must not violate any laws, regulations, or relevant accounting standards.

The notifications of governing regulations** have been published in the Government Gazette on 12 June 2024 and has become effective from 16 June 2024.  

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Notes:

* Notification of the Capital Market Supervisory Board No. Tor Thor. 57/2021 Re: Capital Reduction of Securities Companies, dated 8 October 2021: https://publish.sec.or.th/nrs/9175p_r.pdf 

** Notification of the Capital Market Supervisory Board No. Tor Thor. 19/2024 Re: Capital Reduction of Securities Companies and Derivatives Business Operators, dated 5 June 2024:  https://publish.sec.or.th/nrs/10248s.pdf