Following the Cabinet’s approval in principle of the draft subordinate legislation under the Foreign Business Act B.E. 2542 (1999), as proposed by the Ministry of Commerce (MOC) through the Department of Business Development, which includes a review of business categories under List III relating to the capital market and the Thailand Futures Exchange (TFEX), noting that while TFEX currently allows foreign investors to trade agricultural futures, there remain restrictions on the domestic delivery and receipt of agricultural products. As a result, trading lacks flexibility and cannot fully meet investors’ needs.

The SEC, in collaboration with the MOC and TFEX, has therefore reviewed such restrictions within the framework of domestic market protection by revising the business scope under List III to cover domestic trading relating to native agricultural products or produce not otherwise prohibited by law. An exemption is provided for the trading of agricultural futures on TFEX, allowing delivery or receipt of agricultural products in warehouses designated by TFEX or for export. This enables foreign investors trading agricultural futures on TFEX to deliver and receive domestically sourced agricultural products under specified conditions, whereas previously only receipt for export was permitted. Clear supervisory measures have also been established, such as delivery through TFEX systems, storage in designated warehouses, and product tracking systems, in order to prevent products from being distributed outside the system and to ensure overall market fairness.

In addition, the SEC has reviewed certain types of businesses under the Securities and Exchange Act B.E. 2535 (1992) and the Derivatives Act B.E. 2546 (2003) to enhance operational flexibility under the SEC’s supervision for foreign business operators, who are required to obtain approval on a case-by-case basis. Such businesses are services that Thai operators have continuously provided and have competitive potential, such as securities purchased under resale agreements.

Mr. Anek Yooyuen, Deputy Secretary-General and Spokesperson of the SEC, said, “Under this review, foreign business operators granted exemptions must continue to comply with all relevant laws and regulations and remain fully subject to the SEC’s supervision, in the same manner as Thai operators. The SEC expects this to help promote a more efficient and fair competitive structure in Thailand’s capital market, enhance the quality and diversity of financial services, encourage the participation of investors and business operators with potential, and increase market liquidity and the efficiency of the TFEX market, which will benefit Thai investors. It will also support the development of Thailand’s capital market in line with international standards and help strengthen the country’s economic system in the long term.”