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.