Benefits provided by The Stock Exchange of Thailand (SET)
Benefits to listed companies
Benefits to companies |
A source of long-term capital |
- SET is a valuable source of long-term capital for listed companies.
- Through the Exchange, a firm may raise funds to finance its expansion plans, enhance its competitiveness or improve financial structure.
- Apart from issuing and listing common shares, a public company can raise additional capital by issuing and listing other types of securities, such as preferred shares, warrants, debentures and convertible debentures.
|
Enhance corporate image |
- Because SET and Securities and Exchange Commission (SEC) monitors listed companies, such firms share a positive public image. Generally, listed firms are thought of as financially healthy and having high standards of transparency and information disclosure.
- This public profile boosts a company's credibility, increases its bargaining power and reflects positively on its products and services.
- Moreover, the publication of company information through official SET channels contributes to the firm's marketing through enhanced public acceptance and credibility, without the expense which non-listed competitors must incur in achieving the same result.
|
Business network |
- In a globalized economy, having a strong, complementary, strategic business ally like the SET adds to a firm's competitiveness.
- Public company status attracts foreign investment and opens up opportunities for business expansion and modernization.
|
Management accountability and professionalism |
- Investor confidence, reflected to some extent in the level of stock prices, is a function of a firm's standard of operations.
- The management of a public company must be accountable to its shareholders, who, in turn, play a role in ensuring that the firm operates in an efficient manner.
- Shareholders benefit from improvements in a company's operational efficiency.
|
Employee morale |
- Another generally overlooked benefit of being a listed company is the pride that employees take in being part of the organization.
- Employee goodwill will grow if the firm is prospering, has a positive image, a good reputation and public respect.
- Strong employee loyalty to the company enhances its reputation and productivity.
|
Tax privileges on dividends |
- A listed firm is accorded tax privileges for holding shares in other companies incorporated under Thai law, laws governing mutual funds. Any dividends received from such firms is tax-exempt, provided the dividend is from stocks or investment units held for at least three months before and after the date of dividend payment.
|
Shareholders' benefits |
Increased liquidity |
- Listing on the Exchange generally increases the liquidity of a firm's securities. Shareholders find potential buyers more easily, as their stocks are more marketable.
- The market value of a listed company is easier to determine and its shares are acceptable as collateral for loans.
|
Shareholder protection |
- To ensure that the benefits to investors are protected, SET issues rules and regulations governing securities trading and information disclosure.
- The rules and regulations ensure the transparency, adequacy and promptness of information disclosure and guarantee investors equal access to this information.
|
Tax privileges |
Individual shareholders of listed companies may receive the following tax privileges:
- Proceeds from the sale of listed securities are exempt from personal income tax.
- Individuals who receive dividends from listed companies must pay a withholding tax of only 10 percent provided they select one of the following procedures:
- For individuals who do not wish to be credited with parts or all of the withholding tax, the dividend is excluded from his or her personal income for tax purposes.
- For those who wish to be credited, the dividend is included as part of personal income for tax purposes. The formula for tax credit is x/(100-x) given that the company pays tax at the rate of x%.
|
|