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• Supporting the Association of Thai Securities Companies (ASCO) to become a self-regulatory organization.
SET and the ASCO support their members’ efforts to become self-regulating by giving some supervisory authority that is under SET
jurisdiction to members via the Association. The delegation of authority is based on risk, possible impact and supervisory efficiency, and is
aimed at creating flexibility and reducing obstacles for members to do business by complying with best practices of overseas markets. SET will
supervise matters which affect the stock market in general and the confidence of investors, while the ASCO will oversee business practices.
• Protecting investor assets
In 2012, TFEX and its members jointly set up the Derivatives Investor Protection Fund (DIPF), an extension from the past,
when there was only the Securities Investor Protection Fund (SIPF). The initial size of the DIPF is no less than THB 100 million,
with THB 50 million coming from TFEX and no less than THB 50 million from the members, to protect the assets of investors
according to the Fund’s regulations. Each investor is protected up to no more than THB 1 million if a fund member goes bankrupt
or the fund member engages in a dispute with investors regarding trading on the futures market and the arbitrator’s verdict mean
the fund member must compensate investors with money or other assets.
SIPF regulations have been streamlined to enable the fund to accept new SET members and improve operational regulations
to protect the investors. For instance, the process of accepting new members has been improved. The duty of the fund’s committees
in supporting SET operations has been set out clearly to promote investor confidence. Regulations on applying for compensation
from the fund have been modified so that they should not create an excessive burden for investors.
Developing the capital market: Upgrading quality of the capital market in the long term
SET strives to enhance the readiness of the capital market in various dimensions by working with government agencies, the
private sector and various associations and other organizations in the capital market to continuously improve the capacity of every
group of participants, including listed firms, securities companies, capital market professionals and other personnel, investors and
savers. SET also helps Thai youth, who are the foundation of the country, to learn about savings and financial management, so that
the capital market and the economy may grow sustainably.
Empowering businesses: Developing quality of listed companies for sustainable growth
SET has determined to continually develop the quality of listed companies in three areas, namely good governance, investor
relations, and operating with social responsibility, by developing higher levels of standards and expertise in execution. In particular,
SET encourages listed firms to run their businesses to comply with the environment, society, and governance standard.
Developing good corporate governance (CG)
One of the major developments in 2012 is that SET has improved its CG principles for listed companies B.E. 2549 to be in
line with the ASEAN CG Scorecard, which is the standard to evaluate and rank the CG of listed firms throughout ASEAN. This
modification would help make the principle more up-to-date and in accord with changes in the capital market and society. This
change would also upgrade the standards and practices of good CG of Thai listed companies and make them better able to compete
when the ASEAN Economic Community comes into force in 2015.