SEC Allows Foreign Companies to List on Thai Stock Market
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Thailand's Securities and Exchange Commission (SEC) is allowing foreign companies, which have never registered in any stock market, to register with the Stock Exchange of Thailand (SET) for the first time and to offer newly issued shares and other securities to the public, according to the SEC secretary-general.
Thirachai Phuvanatnaranubala said foreign firms fitting this category must be from countries with a legal system whose standards and regulations are considered 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 the conditions can be flexible if they are state-owned or under state supervision. A joint venture with a 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 Thailand's Stock Exchange will provide an alternative to investors and make the Thai bourse more appealing to investors," said Mr Thirachai.
He said prospective companies are likely to be those doing basic infrastructure business in Thailand's neighboring countries such as power plants or firms in which Thais are major shareholders.
"The listing of foreign firms on the Thai bourse will not only benefit those companies, but also help raise capital for Thai businesspersons having their businesses abroad," Mr Thirachai added.
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