Earlier, the Capital Market Supervisory Board approved in principle the proposed amendments to the repo/reverse repo agreement regulations to allow securities companies to enter into repo/reverse repo agreements of listed securities and investment units with both institutional investors and non-institutional investors. Thus, securities companies and investors will be able to use such repo/reverse repo transaction as a tool for managing liquidity and generate benefits from the securities in possession. In this regard, however, securities companies have to put in place efficient control and risk management. SEC subsequently conducted a public hearing on the approved principles during the months of April and May 2020 to which all respondents agreed with the principles for amending the repo/reverse repo agreement regulations.

The public hearing this time is on the regulations drafted in accordance with the approved principles to accommodate repo/reverse repo transactions of securities companies that operate business in the categories of securities brokerage, dealing, investment advisory and underwriting, as well as mutual fund management, private fund management, venture capital management and securities business financing. Additionally, to promote fair competition or level playing field among business operators in the capital market, derivatives intermediaries would also be allowed to make repo and reverse repo transactions in compliance with the same regulations imposed on securities companies.

The consultation paper is available at https://www.sec.or.th/EN/Pages/PB_Detail.aspx?SECID=649. Stakeholders and interested parties are welcome to give comments and suggestions via the website or email: kornwara@sec.or.th or kamonwan@sec.or.th. The public hearing ends on 23 September 2020.  

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