Bangkok, 9 April 2020 – SEC is seeking public comments on the proposed amendment to the regulations on repurchase and reverse repurchase (repo) agreement to extend the asset classes eligible for such transactions between securities companies and non-institutional investors. The amendment aims to facilitate securities companies in managing liquidity and generating benefits from the securities in possession.
The
Capital Market Supervisory Board’s meeting on 3 March 2020 approved in principle
the inclusion of more asset classes eligible for use in the repo / reverse repo
agreements between securities companies and non-institutional investors. The
objective of the proposal is to allow securities companies and investors to take
advantage of the repo / reverse repo tool in managing liquidity and generating
benefits from the securities in possession. In any case, securities companies
would need to establish efficient control and risk management system.
SEC
is therefore conducting a public hearing on the proposed amendment to repo / reverse
repo agreement regulations whereby the eligible asset classes for securities
companies to enter into such repo transactions with non-institutional investors
would include listed securities and investment units of open-ended funds with daily
redemption feature, except investment units with transferable restrictions. In
any case, such repo transactions would have to be in compliance with the rules,
conditions and procedures as prescribed by law.
Currently, only government debt instruments and investment grade debt
instruments are eligible for repo agreement transactions between securities
companies and non-institutional investors.
The
pubic consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=615.
Stakeholders and interested parties are
welcome to give comments and suggestions via the website or email:
kornwara@sec.or.th or kamonwan@sec. The public hearing ends on 8 May 2020.
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