Bangkok, October 13, 2014 ? The SEC allows allotment of newly issued shares in an IPO to related persons of issuing companies up to 25 per cent of total number of shares offered.  For offering of debentures, bills of exchange (B/E) and derivative warrants (DW), allotment to the related persons will be allowed in the similar manner as that to general investors. The revised regulations aim to strike a balance between supervision on securities offering and investor protection.

SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board recently approved relaxation of regulations on securities allotment to related persons of issuing companies such as directors and executives, providing that the issuing companies must clearly define the portion to be allotted to the related persons while details of the allotment must be disclosed in registration statement and prospectus.

For an IPO, shares may be allotted to the related persons up to 25 per cent of total offered shares.  In cases of  listed companies offering shares or share warrants, the allotment to the related persons is permitted with disclosure of details on the allotment in notice calling for shareholders? meeting to seek approval for such offering. Accordingly, shareholders can learn and aware of  the related persons? movement and their voting. Meanwhile, the allotment of debentures, B/E and DW to the related persons and general investors applies the same rules. In addition, the issuing companies must ensure that subscribers through any channels such as website or telephone, obtain executive summary or factsheet for their investment decision making.

?The regulations on securities allotment to the issuing companies? related persons must be revised as they have been in force for years. The revision aims to achieve more practicality and be more responsive to current circumstances which can help facilitate private sector?s fund raising in the capital market. Without compromising investor protection, the revised regulations focus more on clear and adequate information disclosure for investment decision making,? said Vorapol.