SET Group Corporate Governance Policy and Code of Conduct
SET Board of Governors (BoG) formulates the SET group’s Corporate Governance Policy by adopting principles for good corporate governance of the Organisation for Economic Co-operation and Development (OECD) as core guidelines and taking into consideration the principles for good corporate governance for listed company on a mutatis mutandis basis. All these are to ensure compliance with the set objectives and missions, expectation of stakeholders including business sectors, investors, capital market, and society to create the value for the organization in a sustainable manner.
The compositions of the SET group’s Corporate Governance Policy are as follows:
The SET BoG realizes the importance of SET’s corporate governance as being a securities trading center, responsible for offering the core business andother related services, while taking a role as key economic mechanism of the country. The objectives of the organization are to promote and maintain stability, fairness, auditability, and compliance of listed-securities trading by placing primary focus on the capital market’s benefits and investor protection. SET adheres to good corporate governance and responsibility towards all concerned parties in the capital market and runs the operations with integrity, transparency, fairness, and efficiency in line with the international standards. In addition, SET plays a significant role in enhancing the Thai capital market development basic infrastructure, competitive capabilities, and investment knowledge dissemination to investors, general public, and related entities in an effort to create sustainable and long-term growth quantitatively and qualitatively.
SET places emphasis on providing high quality products and services, standardizing corporate governance among listed companies, encouraging and supporting listed companies to disclose their information in a manner that is complete, correct, equal, and transparent to ensure that the values of securities reflect its actual value. Furthermore, SET also promotes liquidity in securities trading process, while supporting and promoting corporate governance principles and disclosure of the listed companies’ information. In addition, SET also conducts studies of both advantages and disadvantages with hearing sessions to listen to opinions and recommendations from all stakeholders.
Roles and Treatment of Stakeholders
The SET BoG insists on running business responsibly and exercises supervision to ensure transparency of SET operations where the benefits and fair treatment of all groups of stakeholders are taken into account. The SET BoG recognizes the importance of communication with all groups of stakeholders about the key information on the SET group’s operations and such action is deemed as an essential aspect in the good governance practices. Additionally, SET arranges various and efficient communication channels to make sure that important information is comprehensively and swiftly communicated to all groups of stakeholders by taking into account the appropriateness of information acknowledgment ability of each group of stakeholders. Regarding the SET group’s operations such as the development of products and services, among others, there will be a study of advantages and disadvantages where the opinions and recommendations from stakeholders are welcome. Furthermore, there is a promotion of participation mechanism to foster collaboration between the SET group and stakeholders. This is not only to create wealth, financial stability, and sustainability for the businesses but also to promote sustainability of economy, society, and environment.
Disclosure and Transparency
The SET BoG exercises supervision over the disclosure of SET information to the public and stakeholders by taking into consideration correctness, appropriateness, timeliness, and transparency of such information which will be disclosed through channels that are easy-to-access, equal, and reliable. It is stipulated that key information namely the performance of the SET group as well as financial and non-financial information be disclosed in the annual report and SET’s website both in Thai and English.
Responsibilities of the Board
SET strictly performs it operation according to the Securities and Exchange Act and relevant laws. In this regard, the SET BoG exerts authority to formulate policies as well as governs and oversees the SET group’s operations and other operations in compliance with the Securities and Exchange Act. The SET president isresponsible for managing SET’s business in accordance with the policies, rules and regulations, as well as the SET BoG’s resolutions. The details of the scopes of duties and responsibilities of the SET BoG are included in the Charter of SET Board of Governors already approved by the SET BoG to be prepared in writing.
Practices on securities trading by SET Governors and employees
To foster public trust in the Stock Exchange of Thailand, the SET’s Board of Governors has stipulated the securities trading practices that Governors and staff are required to follow. These practices require that subscription to and trading of securities must be done honestly, without exploitation of confidential information or misuse of authority or position. SET Governors and employees are required to follow specified procedures in the acquisition or disposition of listed securities. Governors must report on their securities holdings or those of their spouses, cohabiting couple or minor children; such reports shall remain confidential. All employees are required to seek prior written approval from their supervisor before performing any securities transaction. Also, employees may sell securities only after they have been held for 30 or more days.