Pichai backs swift punishment from SEC
Finance Minister Pichai Chunhavajira voiced his support for implementing an emergency decree that would enhance the Securities and Exchange Commission’s (SEC) authority to penalize wrongdoers. Speaking at an event organized by the SEC on Thursday with the theme “Developing Thailand’s Capital Market to Drive Economic Growth,” Mr. Pichai emphasized the importance of streamlining the legal procedures for dealing with offenders and enforcing regulations related to stock market investments to boost confidence among investors on the Stock Exchange of Thailand (SET).
The Finance Minister outlined his plans to push for the emergency decree to broaden the SEC’s enforcement capabilities, especially in high-impact violation cases, allowing for prompt action against offenders. Three areas were highlighted for strengthening the SEC’s authority: firstly, empowering the regulator to directly present case reports to prosecutors for expediting legal processes, particularly in high-impact cases; secondly, enhancing oversight of professionals in the financial market, such as auditors, financial advisors, bond distributors, and bondholder representatives to enhance investor protection; and thirdly, increasing penalties for unlawful short selling beneficiaries, extending liability to the end beneficiaries beyond just securities firms conducting the trades.
Mr. Pichai emphasized that delays in implementing the Securities Act due to investigations by multiple agencies and complex approval procedures resulted in substantial investor losses, especially in serious cases. By allowing the SEC to compile and submit case reports directly, legal proceedings would be hastened, fairness enhanced, and investor protection strengthened.
“The ministry is keen on expediting the enactment of the emergency decree to enable swift enforcement,” Mr. Pichai stated. “Upon approval by the cabinet and review by the Council of State, the decree will come into immediate effect.”
Furthermore, the SEC’s Secretary-General, Ms. Pornanong Budsaratragoon, mentioned that the process of imposing civil penalties on wrongdoers has been expedited significantly through the collaboration of various agencies, potentially reducing the process by up to 30%. However, she noted that the emergency decree does not encompass the investors’ compensation fund as of yet.
Mr. Pichai expressed the government’s interest in attracting foreign companies to list on the SET and encouraging Thai-listed companies abroad to return and list on the domestic exchange. Discussing digital assets, he acknowledged that Thailand was among the first nations to promulgate digital asset laws but fell behind in further advancement and integration of innovation. The government’s aim is to enhance the efficacy of these laws, prioritizing investor protection and nurturing responsible digital asset entrepreneurs with a robust compliance orientation.
Mr. Pichai highlighted the government’s plan to support asset-based tokens and digital securitization by introducing a sandbox framework for regulatory learning and development. He also suggested that government bonds could potentially be classified as stablecoins, and digital assets could evolve into an alternative investment avenue for retail investors.
In terms of Thailand’s aspiration to become a financial epicenter in the region, Mr. Pichai underlined that the first step would be aligning standardized regulations across Southeast Asian nations to streamline cross-border transactions and enhance market competitiveness.