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SEC and SET vow to continually collaborating to drive Thailand’s capital market

Saturday 1 June 2019 | No. 67 / 2019

Bangkok, 1 June 2019 – The Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) have made a commitment to promote Thailand’s capital market after executives of the two organizations meet on June 1, 2019. The two parties have agreed to continue ongoing collaboration in three key areas. First is “One Stop Service” center, which will start to provide services for listed companies in September this year. Second is “One Report” which will be implemented next year, aiming at reducing two forms of report; the annual registration statement (Form 56-1) and annual report (Form 56-2) to be a single form of report in order to cut redundancy. Third is “One ESG”, to drive ESG development among listed companies by focusing on implementation. Moreover, the two organizations will debut their collaboration in research field by starting with studying investors’ behavioral cluster and the study will provide input for formulating long-term policies.
SEC Secretary-General Ruenvadee Suwanmongkol said, “As I have taken a job as head of SEC since early May,  I commit myself to work closely with SET on holistic approach in order to enhance competitiveness of Thai capital market and will continue to implement projects agreed in the first quarter, aiming at achieving best results in a timely manner. We support listed companies, reduce redundancy as well as regulatory burden. This would lead to more efficiency and clarity. We have also committed ourselves to promote best practices of environment, social and good governance as well as human rights in line with UN Sustainable Development Goals.”

SET President Pakorn Peetathawatchai said with SET’s key strategy, “Creating Partnership Platform to Drive Inclusive Growth” aiming to be a comprehensive platform for the Thai capital market, SET has enhanced ease of accessing funding sources for the real sector and has also continuously promoted sustainability for inclusive growth. Therefore, the cooperation with the SEC and related parties towards a holistic approach will drive the capital market to sustainably benefit the economy, the society and the country.”

Key collaborations are as follows:

1. One Stop Service: the end-to-end service to provide advice to companies and listed companies regarding fund-raising and regulatory compliance. Currently, they are required to contact two organizations when they want to get those services. The project of One Stop Service will start in September this year.  

2.  One Report : the initiative to reduce two forms of reports; the annual registration statement (Form 56-1) and annual report (Form 56-2) to a single form of report in order to cut redundancy. Currently, it is under public hearing process. Listed companies could submit the One Report of their 2019 annual reports scheduled to be due in 2020 on voluntary basis. The new rule will be enforced for the 2020 annual reports to be due in 2021. The one report will also be applied for IPO filing (Form 69-1) which will be submitted in 2021 onward. The report will also be changed in order to make it compact and provide more information on ESG (Social, Environment, and Governance) and human rights to propel the country to achieve UN Sustainable Development Goals (SDGs).

3. One ESG: SEC and SET will jointly setup the steering committee to drive the roadmap of environment, social and governance development for the capital market and adopt holistic approach to make a clear role for each party. SEC will be responsible for issuing regulations, regulating, enforcing rules and protecting interest of minority shareholders. Additionally, SEC will cooperate with institutional investors in order to drive listed companies to implement best practice of ESG. SET will facilitate listed companies to practically implement ESG practices. Meanwhile, Thai Institute of Directors (IOD) will be responsible for promoting the role of board of directors of listed companies in implementing the practices. The IOD will also be a center for proving guidelines and practices related to ESG issues.     

Moreover, SEC and SET have agreed to collaborate in joint research. The first project of which will be on the roles of each generation and the impact on investment. The study will provide input for formulating long-term development policy