The SEC proposes to amend the short selling rules to
reflect current capital market context. In developing the proposals, the SEC has
conducted a public hearing on the proposed principles, engaged in ongoing
discussions with the private sector and relevant stakeholders, and taken into
account feedback—most of which supports the overall principles—along with
suggestions to refine the rules for greater suitability, align with brokerage
practices, and reduce unnecessary burdens on business operators. Key proposed
amendments include:
(1) Clarifying the definition of short selling
transactions;
(2) Enhancing the efficiency of short selling services, such
as Know Your Customer (KYC) procedures for inter-broker* clients, and short
selling order acceptance and transmission process;
(3) Requiring clients to provide assurance that clients
have borrowed or located
a source of securities borrowing before placing short selling orders. Moreover,
the SEC proposes to remove the requirement for brokers to include a clause in
the service agreement requiring clients to pay compensation if brokers are
penalized due to the client’s fault.**
In addition, the SEC proposes to improve the SBL service rules
for more clarity by emphasizing that securities companies must have effective
risk management systems and only lend or confirm the availability of securities
for lending when sufficient securities are actually held. This measure aims to
prevent risks arising from lending or confirming lending more than available
securities.
The
consultation paper is available at on the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1136
and the legal hub at https://law.go.th/listeningDetail?survey_id=NjQxM0RHQV9MQVdfRlJPTlRFTkQ=. Stakeholders and interested
parties are welcome to submit comments and suggestions via the SEC website or
by email at laksika@sec.or.th,
gritchanut@sec.or.th, phachisa@sec.or.th or anudporn@sec.or.th. The public hearing ends on 11 February 2026.
Notes:
*Inter-broker refers to securities
companies under foreign law and acting as brokers or agents in trading or
exchange of securities for others.
** Session 3.2.1, consultation paper AorNorPor. 41/2567