BANGKOK, March 22 (Xinhua) -- The Stock Exchange of Thailand (SET) has geared up for regulatory reform by debuting the amendment of regulations on the temporary trading suspension "SP" sign in the case that listed securities have been posted the SP sign for an prolonged period and before delisting in light of investor protection.
In a statement released for media on Thursday, SET said they amended listing and disclosure rules to reduce duplication while aligning with the Securities and Exchange Commission (SEC)'s regulations, after having conducted public hearings among stakeholders and having been approved by the SEC board, effective on April 1, 2019.
SET President Pakorn Peetathawatchai, quoted by the statement, said that in accordance with SET's strategic plan, the Regulatory Reform will eliminate duplicated processes and regulations to suit the current situation and benefit related parties while maintaining supervisory efficiency.
The amendment of regulations on the "SP" sign allows temporary trading after listed securities have been suspended for a certain period on grounds of failure to disclose material information, to submit financial statements, or the auditor issued an adverse opinion on the financial statements.
The temporary trading will enable investors to trade securities ahead of being posted "SP" sign later on if there is no progress of problem solving, while providing trading opportunity for investors prior to delisting. Definitely, there are measures to mitigate risks to alert investors to be cautious during the temporary trading period, added Pakorn.
Moreover, SET has also adjusted the information disclosure regulations to reduce the overlap and burden of listed companies. In addition, regulations concerning holding company and infrastructure company are also amended to match the current situation, in line with the SEC's regulations.
Meanwhile, the second phase of the regulatory reform will cover the regulations involving listed companies, securities trading and member companies, and is expected to be launched within 2019.
