Bangkok, November 3, 2014 ? The SEC will revise underwriting rules to provide more flexible risk management by permitting underwriters to trade underlying securities of the underwritten securities. 

SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board recently approved rule revisions to allow underwriters to trade underlying securities of securities underwritten by them. The permission will cover either trading to hedge derivatives positions that underwriters already have or trading of shares in SET50 or SET100 subject to certain conditions.  In addition, underwriters must put in place an effective conflicts of interest prevention system. This aims at facilitating under the current circumstances.

Meanwhile, the SEC supported investors to have adequate and ongoing information by requiring lead underwriters in the initial public offerings (IPOs) to issue 4 consecutive quarterly research papers for IPO shares. The requirement will help solve the problem of lacking research papers for shares issued by small and medium sized companies.

?The SEC realizes underwriter?s important roles in relation to investors? investment decision making and credibility of Thai capital market. As such, impractical and outdated regulations will be revised to support underwriters? performance with trustworthiness and responsibility to investors, which will eventually build up their own credibility,? said Vorapol.