The Board of Governors expects the entities making up the SET Group to comply with international standards for the principles of good corporate governance as set forth by the Organisation for Economic Co-operation and Development (OECD). Furthermore, SET encourages listed companies and members to abide by the principles of good corporate governance to enhance their credibility, transparency, and business competitiveness, as well as to serve as good examples in the Thai capital market.
SET Board of Governors clearly communicates to the SET directors, management, and staff the guidelines for adhering to the policy of good corporate governance, which can be divided into five categories, with each category including principles and recommended best practices:
Role of stakeholders
Role and responsibilities of the Board of Governors
Disclosure and transparency
Rights of shareholders
Equitable treatment of shareholders
Code of Conduct
As set forth in the SET Code of Conduct, SET Governors, committee members, consultants, and employees acknowledge and agree to adopt the ethical principles of the Code of Conduct in the performance of their SET duties and in their official dealings with others. This Code of Conduct imbues SET personnel with an ethical outlook that helps maintain the public’s confidence in SET as Thailand’s securities trading center. Strict adherence to the code’s principles by SET Governors, committee members, consultants, and staff reduces the likelihood of the use of insider information and conflicts of interest. Specifically, the Code prohibits any person connected with SET from using any SET information obtained through the performance of their duties to benefit themselves or other persons, and from taking part in or concealing any act that may cause a conflict of interest with their duties, or taking part in any other illegitimate act that prevents them from performing their duties in an equitable and ethical manner.
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 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.