Bangkok, 5 June 2017 ? The SEC is seeking public comments on the proposed amendments to the Securities and Exchange Act B.E. 2535 (1992) concerning three important matters: (1) regulatory sandbox, (2) shareholders? meeting pursuant to the SEC's order, and (3) establishment of the Capital Market Development Fund (CMDF).

The draft amendments under public consultation can be summarized as follows:

 (1) Regulatory sandbox: revising the definition of securities businesses to include an emerging business model that uses financial technology to experiment and offer innovative products and services to investors in the Thai capital market under certain limitations and clearly defined conditions. In this regard, the SEC Board would have the power to exempt businesses with certain characteristics from being categorized as securities brokerage, securities dealing, securities underwriting and mutual fund management, and allow such businesses to participate in the regulatory sandbox program, which has already included investment advisory services and private fund management. In addition to keeping up with the fast pace of financial innovation, the draft amendment would reduce burdens on the qualified business operators and provide investors with quality, diverse and widespread services; 

(2) Shareholders? meeting: allowing a shareholders? meeting of a listed company to be held pursuant to the SEC's order and upon approval of the SEC Board in the event that the operation and management of the listed company may materially affect the benefit of the public, the company or the shareholders, and that other normal channels may not be available for timely problem solving. However, the SEC's power shall be limited to issuance of order of shareholders? meeting. This alternative approach has been considered in conjunction with the Ministry of Finance and regarded as another mechanism for protecting and empowering shareholders to make their own decisions to solve the company's problems;

(3) CMDF: establishing the CMDF as a separate juristic person from the Stock Exchange of Thailand (SET), as recommended by the Ministry of Finance, and appointing the SET chairman as CMDF president, and the SET executive as CMDF manager. In addition, the SET would be required to make an annual contribution of at least 90 percent of the profits after deducting tax and operating expenses. According to the 3rd Capital Market Development Plan (2017-2021), the role of market promotion and development should be separated from the SET so that the SET would be able to focus on its role of securities trading exchange more efficiently. Meanwhile, the CMDF would be responsible for policy making and overseeing that market development efforts would proceed in the same direction with transparency, accountability and good governance. 

SEC Secretary-General Rapee Sucharitakul said: ?These amendments are important to the promotion and development of the Thai capital market. We have taken into consideration the comments and suggestions gathered from the public hearing in March 2016 on the governing principles, which covered other key issues such as supervision of exchange, restructuring and mechanism of mutual fund supervision. 

?This public hearing is another crucial step to collect public comments on all fronts for further consideration to ensure that the final amendments would be appropriate and conducive to market advancement and sustainability,? Mr. Rapee added. 

The consultation paper is available at www.sec.or.th/hearing.

Stakeholders and interested parties are welcome to submit comments on (1) regulatory sandbox at wasu@sec.or.th or facsimile at 0-2033-9660, (2) shareholders? meeting pursuant to the SEC's order at corgov@sec.or.th or facsimile at 0-2263-6099, and (3) CMDF establishment at jarun@sec.or.th or facsimile at 0-2263-6074. The public hearing ends on 21 June 2018.

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Remark: Regulatory sandbox is a framework allowing business operators or developers to experiment with innovative products and services in a controlled environment without being subject to the existing regulations.