Bangkok, 2 June 2020 – SEC has informed investors of the posting of supervisory signs on listed securities in accordance with the relevant regulations of the Stock Exchange of Thailand (SET) to ensure proper investor protection. In case of irregular trading activities, SEC and SET will collaborate closely to manage such situation.
SEC gives information on posting trading signs on listed securities in accordance with SET regulations to protect investors. SET posts supervisory signs on listed securities to warn investors to make investment decision carefully. For example, Notice Pending (NP) in case of awaiting material information, or Caution (C) in case a listed company has the characteristics as prescribed in the governing regulations.* For example:
• Shareholders’ equity falls below 50 percent of the paid-up capital with discount on share capital deducted;
• Filing a rehabilitation petition under the Bankruptcy Act and the Court has accepted the petition or being under the creditor’s filing for bankruptcy under the Bankruptcy Law and the Court has accepted the petition;
• Listed company’s whole or almost all assets are in the form of cash or short-term securities (Cash Company).
In case of posting the Trading Halt (H) and Trading Suspension (SP) sign, trading activities are suspended when an event occurs and impacts decision making of investors. For example, company does not disclose information that affects financial position or does not submit financial statements or financial statements are incorrect** and will fall into the consideration of withdrawal cause in the event that listed company has financial problems or fails to comply with the regulations and thus generate severe impact, for example, the shareholders’ equity falls below zero.
In case of any irregular trading activity, SET is the frontline inspector and, if it is considered a liable offense, will gather information for SEC to conduct in-depth inspection and take action against the offender under the law in due course. SEC and SET are in close collaboration to foster transparency and investor confidence.
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Notes:
* SET Regulation regarding Measures in Case of Events that May Affect the Listed Companies’ Financial Condition and Business Operation B.E. 2561 (2018), effective since 2 June 2018.
**Regulation of the Stock Exchange of Thailand Re: Rules, Conditions and Procedures for Temporary Suspension of Listed Securities Trading B.E. 2562 (2019)