The Capital Market Supervisory Board passed a resolution approving the amendments to the regulations to clarify the nature of business operation of securities issuing companies or listed companies that may fall under the category of investment company, and to ensure that their operation does not demonstrate the objective of seeking investment returns for investors in a similar manner to operating an investment management business. The amendments aim to prevent the use of the initial public offering channel as a regulatory arbitrage tool. The public hearing on this matter was completed in May 2023.  

Essentially, the regulations as amended by the Capital Market Supervisory Board are as follows: 

  (1)  Clarifying the characteristics of an investment company, referring to a company that engages in investments without active involvement in management. This includes investments in securities, derivatives or digital assets at a collective total exceeding 40 percent of the total assets as per the most recent financial statements or the consolidated financial statements, excluding companies operating financial institution business;  

  (2)  Requiring listed companies with the characteristics under (1) to disclose information related to investments in the Notes to the Financial Statements up until the period with the investment proportion lower than 40 percent of the total assets;      

(3)  Prohibiting offering of all types of securities in accordance with the Securities and Exchange Act of 1992 in the case where the Stock Exchange of Thailand (SET) publishes a warning sign on any listed company that possesses the characteristics of an investment company. 

The amended regulations in this matter have been published in the Government Gazette and have taken effect as from 1 January 2024. 

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