Thailand’s Cabinet has approved four draft capital market laws, covering amendments in six key areas: the promotion of the digital capital market; supervision of securities and derivatives business operators; the secondary market and organizations related to securities and derivatives business; fundraising; supervision of audit firms; as well as enhancement of law enforcement efficiency.
The Securities and Exchange Commission (SEC) submitted four draft capital market laws to the Cabinet, all of which had already been reviewed by the Office of the Council of State. The four draft laws comprise the draft Securities and Exchange Act; the draft Derivatives Act; the draft Trust for Transactions in Capital Market Act; and the draft Act Amending the Emergency Decree on Digital Asset Businesses.
The proposed amendments cover six key areas, as follows:
(1) Promotion of the digital capital market, such as amending the law to comprehensively support electronic processes in the capital market and adding provisions on service providers of systems that are significant to the capital market.
(2) Supervision of securities and derivatives business operators, such as improving the supervision of major shareholders of securities companies and derivatives business operators so that the requirements are consistent, and adding provisions related to the supervision of personnel in the securities and derivatives businesses.
(3) Supervision of secondary markets and organizations related to securities and derivatives businesses, such as revising provisions on over-the-counter centers to reduce limitations on their establishment and operation; adding supervisory measures to enhance the effectiveness of supervision of the Securities Exchange; and adding provisions on the investment in securities by associations related to the securities business.
(4) Fundraising, supervision of audit firms, and supervision of service providers related to the capital market, such as revising provisions on the issuance and offering of securities and debentures; expanding the rules on the acquisition of securities for business takeovers to cover trusts; and supervising audit firms and service providers related to the capital market.
(5) Enhancement of law enforcement efficiency and prescription of sanctions, such as granting SEC officials authority to participate as joint investigators in the investigation of certain offenses that have a high impact on confidence in the capital market system or the economy as a whole, as well as revising penalty provisions by adding measures on Pinai Regulatory Fines in line with the principles under Section 77 of the Constitution of the Kingdom of Thailand, B.E. 2560 (2017), and the Act on Imposition of Pinai Regulatory Fines, B.E. 2565 (2022).
(6) Other matters related to the SEC’s organizational administration
Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “The four draft capital market laws serve as an important mechanism for strengthening Thailand’s capital market framework and advancing its development in a tangible way. They support the long-term development of a more modern, transparent, and competitive capital market, while strengthening the supervision of business operators and related service providers and enhancing the speed and effectiveness of law enforcement. The proposed amendments also help foster an environment conducive to sustainable growth, reinforce investor confidence, and strengthen the role of the capital market in supporting the country’s economy.”
Following the Cabinet’s approval of all four draft laws, the drafts will proceed through the remaining legislative process, including consideration by Parliament, before being published in the Royal Gazette and entering into force as prescribed by law.
