In a case that at the minimum 80% of targeted fundraising amount in crowdfunding project are subscribed, this is regarded as successful debenture crowdfunding. This regulatory revision aims to assist small- to medium-sized enterprises (SMEs) to gain greater access into funding sources, and to be in line with overseas crowdfunding regulations. It came into force from 16 March 2020.

SEC Assistant Secretary-General Jomkwan Kongsakul said “SEC is ready to support the government policy in promoting SMEs and startups to gain access into funding sources for business development through capital-market mechanisms. Crowdfunding is another alternative that helps enterprises to raise fund. Presently, there are three approved funding portals and several entities have expressed interest to seek for the approval. Crowdfunding portals must be established with an efficient IT system in accordance with  SEC’s rules and guidelines associated with establishment of IT system***, aiming to establish clearer standards and guidelines for business operators. The IT system must maintain security, integrity and availability of work systems and data in regard to IT risks and cyber risks. This took effect on 16 March 2020.”

Previously, some crowdfunding projects did not succeed as they did not fully meet a targeted fund-raising amount. According to the All-or-Nothing rule, such projects would not receive the funds raised during subscription period. Therefore, the Capital Market Supervisory Board agreed to revise the rules on the debenture crowdfunding to exempt the previous All-or-Nothing rule and allow debenture issuers, who can raise funds at the minimum 80% of targeted fundraising amount in crowdfunding project, not to cancel the offering. This regulatory revision aims to reduce any limitations and to be in line with overseas crowdfunding regulations in Malaysia, the United Kingdom and the United States. Crowdfunding portals have to disclose information and notify investors about the condition before the investor makes a decision to subscribe such debentures.

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* Crowdfunding is a fund raising from crowd through funding portals typically via the internet. It is another alternative for small- to medium-sized enterprises (SMEs) and startups to gain access into funding sources and enterprises issue equities or debentures to investors in exchange.

**All-or-Nothing rule means that crowdfunding project issuers need to fully meet the targeted fund-raising amount only, in order to receive the funds raised from investors.

***Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 37/2559. Re. Rules in Detail on Establishment of Information Technology System dated 12 September 2016 and Notification of the Office of the Securities and Exchange Commission No. Nor Por. 3/2559. Re. Guidelines for Establishment of Information Technology Systems dated 12 September 2016

https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=8026&NewsNo=52&NewsYear=2563&Lang=TH