SEC gives green light for foreign companies to register on Thai bourse

BANGKOK, June 7 (TNA) – Thailand’s Securities and Exchange Commission (SEC) is allowing foreign companies which have never registered in any stock market to register in the Stock Exchange of Thailand (SET) for the first time and to offer newly issued shares and other securities to the public, according to SEC secretary-general.

Thirachai Phuvanatnaranubala said foreign firms fitting in this category must be from countries with legal system in accordance with international standards and regulations acceptable in terms of investor protection, good governance, and law enforcement. In addition, state agencies where the company is based should have bilateral agreements with Thailand regarding the exchange of information and audit as well as legal cooperation concerning international crime.

A company’s market capitalisation will also be taken into consideration, he said, adding that the conditions however can be flexible if they are state-owned or under state supervision. A joint venture with Thai business is also applicable with a working capital not below the ceiling set by the Bank of Thailand (BoT).

“Allowing stocks of foreign companies to be listed in the Thailand’s Stock Exchange will provide an alternative to investors and will make the Thai bourse appeal more to investors,” said Mr Thirachai.

He said prospective companies are likely to be those doing basic infrastructure business in Thailand’s neighbouring countries such as power plants or firms in which Thais are major shareholders.

The listing of foreign firms in Thai bourse will not only benefit those companies, but it will also help raise capital for Thai businesspersons having their businesses abroad,” Mr Thirachai added.

The SEC will supervise foreign companies with the same standard and measures applied on Thai firms for instance, permission and disclosure of information, he said.

The SEC will ease some rules for foreign companies so as to be practical and suitable for them, according to the secretary-general.

Foreign firms will be allowed to apply international accounting standards and file an English application form for the SEC approval of the initial public offering. (TNA)