SET to raise bar in supervision of listed companies, gradually effective from March 25, 2024

Tuesday 20 February 2024 14:16
The Stock Exchange of Thailand (SET) will reinforce the supervision of listed companies throughout the process, starting from the listing process to the governing and overseeing of listed companies. The tighter criteria are aimed to strengthen listed companies' financial position and operating performance and to enhance information disclosure to ensure complete information for investors. Moreover, SET will equip investors with clearer and more diverse warning signs to alert them when listed companies may face challenges on financial position and business operations, or have additional clarification to be disclosed, as well as enhancing the consideration of qualification for backdoor-listed companies and stock trading resumption to align with those of the new listings. The amendment will take into effect gradually, starting from March 25, 2024.
SET to raise bar in supervision of listed companies, gradually effective from March 25, 2024

SET President Pakorn Peetathawatchai said that SET has constantly collaborated with the Securities Exchange Commission (SEC) on study, review and various criteria amendment in accordance with the current circumstances appropriately and timely. Most recently, SET has updated certain criteria to strengthen the supervision of listed companies throughout the process, starting from the listing process, the maintaining status, and the delisting, purposely to enhance the quality of listed companies with more disclosure of information and escalation to investors to reinforce confidence and stability in the Thai capital market. On February 19, 2024, SET adjusted the disclosure of the list of securities holders in order to provide investors with more information. For the latest revision, four areas will be adjusted as follows:

  1. Improve the qualifications of companies to be listed on both SET and mai by increasing the requirement on profits and shareholders' equity. The objective is to strengthen both the financial position and the operating results of the companies applied to be listed, effective January 1, 2025
  2. Escalate signs to be concerned for investors by adding causes as follows:
    • 2.1 In the case there are circumstances that may affect listed companies' financial position, operating performance, and financial liquidity, in cases of no business operations, continuous losses, default on payment to financial institutions or debt instruments
    • 2.2 In the case where the auditor's report contains the issuance of a disclaimer opinion on the financial statements
    • 2.3 In the case where a listed company's qualifications do not meet the specified criteria, consisting of: being a cash company, having insufficient audit committee, free float not meeting the criteria, or not arranging Opportunity Day as specified
      There will be displayed the different symbol depending on such cause to warn investors. This new sign will replace the current C (Caution) sign.
  3. Add causes for delisting in the case where a listed company has no business operation for many years consecutively or is unable to rectify the Free Float requirements within the specified period, to ensure that listed companies are of suitable quality to be listed companies.
  4. Enhance the consideration of backdoor-listed companies, and trading resumption qualifications to be on par with the new listings, to ensure that listed companies are of high quality, no matter through which listing channel.

The adjustments in sections 2-4 are effective on March 25, 2024.

Please note that these amendments have undergone hearing sessions from all parties involved, and have been approved by the SEC Board of Directors.

For more details, please visit SET's website: under the menu "Rules & Regulations" and "Rules & Circular Letter".

Source: The Stock Exchange of Thailand