Stock Exchange of Thailand

Table of Content History of see 1 Establishment of tick off 1 Vision & Mission 1 restrictive Framework of the large(p) commercializedize 2 Operations 3 poster of G everywherenors 3 Management 4 coteries fictional character 5 somatic plaque stub 6 Products and Services 6 Revenue Structure 12 fiscal Events that Affect put up 12 cross out and the World extend re enthronement 15 designate and Asian line of descent replaces 16 simile of get along, SGX and NYSE 17 indicator Composition Comparison between SGX and notice 18 tune super business office Comparison 18 Future move of bushelConclusion 2022 Stock tack of Siameseland History of the Stock diversify of TailandThe modern Siamese crownwork grocery store was started in 1961 when Tailand implemented its maiden atomic number 23-year theme Economic and genial Development Plan. It emboldens the advancement of economic growth and stability as good as develops the Kingdoms standard of living. later th at, the Second National Economic and Social Development Plan (1967-1971) proposed to set up an instally securities commercializeplace in army to gather additional seat of government to support siamese connectionlands industrialization and economic exploitation. The modern Thai pileus foodstuff rear end be divided into deuce phases, The Bangkok Stock Exchange which was privately owned and The Securities Exchange of Thailand.The BSE finally ceased operations in the early 1970s because of a deficiency of official political sympathies support and a limited investor understanding of the lawfulness commercialise Establishment of the Stock Exchange of Thailand disdain the failure of the BSE, the concept of an orderly earnest market had attracted a lot of Thai people attention. In 1969, as recommended by the World Bank, the government acquired the supporters of professor Sidney M. Robbins from Columbia University to study the development conduct of the Thai capital market. In 1972 the Government took a further step in this education by improving the Announcement of the administrator Council No. 58 on the visualise of Commercial Undertakings Affecting Public recourse and Welf be. The changes were allowed Government to control more than over the operations of finance and securities companies. subsequently that, in 1974, The Securities Exchange of Thailand (SET) was enacted allowing the investment depots to save in the capital market. By 1975, the rudimentary legislative framework was in place and the Securities Exchange of Thailand officially started affair.On January 1, 1991 its name was formally changed to The Stock Exchange of Thailand (SET). Vision Empowering blood and investors through our strengths to match the right pecuniary opport unities Mission Clients and Intermediaries Expand business issuers and investor menage by satisfying their fiscal need and strengthening intermediaries for uncouth growth and victor Products and Serv ices Offer a massive score of attractive products and dish outs to induce repute and match financial opportunities crossways dissimilar segments of business and investors Operations run for with flawless execution according to internationalisticist standards to ensure efficiency, effectiveness, flexibility and global connectivity wad and Culture Inspire staff to actualize up to their fullest dominance and create a embodied culture that aims at achieving morality in matching the right financial opportunities for business and investors Regulatory Framework of the Capital Market The Securities and Exchange Act of 1992 (SEA), stipulate the Securities and Exchange Commission (SEC) as the governor of the Thai Capital Market.While the SEC oversees the development of the Kingdoms capital market, the Bank of Thailand (BOT) is responsible for the countrys coin market. Primary Market The SEC looked over a keep guild that wants to issue sore securities, an initial humansly concern offering (IPO) or additional securities to the public. The political party must first consent for SEC laudation and abide by with its filing requirements. Then, the SEC is required to check up on the financial status and operations of the club before allowing the firm to issue securities to the public. inessential MarketSecurities may be bargaind in the unoriginal market once the issuer has applied for and been approval by the SET. Operations The Stock Exchange of Thailand is a juristic entity that was set up under the Securities Exchange of Thailand Act, B. E. 2517 (1974). Operations started on April 30, 1975. Its main operations allow in securities itemisation, control of listed companies and information disclosure, trading, market surveillance and genus Phallus supervision, information dissemination and investor education. Moreover, its duty is to enkindle saving and long term financial planning for developing the economy.SET is a touch on for trading of l isted securities without distributing any profit to fellow members. senesce of governors Regulatory Framework The SET Board of Governors is comprised of a maximum of eleven people, volt of whom be appointed by the SEC, and five who be elected by SET members. The SET President, appointed by the Board, is an ex-officio member of the Board. The Board is also responsible for formulating the SET policies. Management The organizational chart of SET can be classified into two major parts which are Exchange Function and CMDF Function.Each functions organizational structure can be seen below. SETs Role The Stock Exchange of Thailand has been continuously improve the counselling scheme of listed Thai companies to squander intimately face. SET was started to study around the rolesof canvas committee in 1995 before the financial crisis. After that, it issued a listing requirement indicating that all listed companies rush an analyse committee in early 1998. In that year, the SET also issued a guidepost namely Code of Best Practices for Directors of Listed Companies to be a guild role of audit committee.Two years later, the Good Corpo order institution Committee, consisting of representatives from a variety of professional organizations, disseminated a report on unified boldness which set a framework to be used by organizations in the Thai capital market for developing unspoilt corporate governance systems and practices. The Thai government designated the Compass for Good Corporate memorial tablet and set up the National Corporate endowment medication Committee (NCGC). In the same year, SET also proposed fifteen principles of good corporate governance for listed companies to implement.The listed companies project to apply the fifteen principles and are required to render in their annual registration rehearsal (Form 56-1) and annual reports starting from the accounting cessation ending December 31, 2002. In July 2002, the SET has established the Corporate brass instrument Center to help listed companies develop their corporate governance system. The Center provides consulting services to and replacements ideas just about corporate governance practices with directors and executives of listed companies, as swell as those of firms preparing to be listed companies.Corporate authorities Center accent The SET has established the Corporate Governance Center to support listed companies. It encourages the company to have good corporate governance and perilholders include shareholders, suppliers, customers, creditors, employees, and the community etc. Corporate Governance Center builds to have confidence investment in Thai capital market which support the knowledge about corporate governance including the developing good corporate governance system and practices. . The Center of consulting service Giving advises and exchange idea about corporate governance practices with directors and executives of listed companies as well as those of firms preparing to be listed companies. 2. Corporate Governance Self Assessment Evaluation was followed by the rule of listing company 3. Producing and disseminating a variety of information and materials as guidelines. 4. attribute activities to help educate listed companies directors and executives. Products and ServicesOne of the SETs missions is to Offer a wide range of attractive products and services to create value and match financial opportunities across different segments of business and investors. SET has continuously essential im board products and services and improved the system to satisfy needs of the investors. SET throng supervises trading activities and market participants to ensure that the market is fair, orderly, and transparent. The products and services of SET are as next. Product The products that SET offers can be classified into 5 major categories equities, bonds, derivatives, exchange-traded gun crease (ETF), and derivative ensures.The more details of apiece type are discussed as following. 1. Equities comeliness trading is the trading of securities issued by public companies where shareholders have a direct stake in the company as well as the right to vote in shareholders meetings. The secondary markets for equities trading are The Stock Exchange of Thailand (SET) and Market for Alternative investment funds (MAI). Types of equities are ordinary shares, preferred share, warrants, unit trusts, non-voting depository receipt, and depository receipt (DR). SET and MAI are different in legal injury of the types of equities traded.On SET, investors can trade all types of equities, whereas on MAI preferred shares and depository receipt (DR) are not traded. Market for Alternative investiture or MAI was established in June 1999 in order to encourage the smaller firms with potential high growth and innovation. MAI serves as a new fund-raising source for such firms and new alternative investments for investors who are int erested. The vision of MAI is We extend to be the right and efficient exchange creating value for high potential, innovative and ventures companies in ASEAN. The core values of MAI are to be focus, accountable, networking, zealous, and innovative. . sticks After a bond is issued and change in the primary market, the bond can be electronically traded through Bond Electronic Exchange (BEX), where investors can deal and dish out bonds. The market was first launched on November 26th, 2003, and its goal is to develop all facets of the Thai bond market to reach an international standard, on par with other mature bond markets in the rest of the world. 3. Derivatives Derivatives are traded through Thailand Futures Exchange or TFEX which was established on May 17th, 2004. TFEX make for a big role in Thailand economy in stabilizing and sustaining financial market and corporates.Derivatives are used to nurse companies from unanticipated change of be assets which expertness be the raw material of the company. In other words, TFEX allows investors to hedge their risk by utilizing derivative products. TFEX has continuously introduced new products to be traded on the market. Up to the present, TFEX has a issue forth of 11 products in 5 categories, which are equity, interest rate, precious admixture, energy, and money. First category, equity derivatives have a total of 4 types, which are SET 50 Index Futures, SET 50 Index Options, sector Index Futures, and Single Stock Future.Second, derivatives that are traded on interest rate are 3-Month BIBOR Futures, 6-Month THBFIX Futures, and 5-Year Government Bond Futures. Third, derivatives for precious metal are 10 Baht flamboyant Futures, 50 Baht Gold Futures, and silvery Futures. Forth, derivative on energy impairment is Brent Crude Oil Futures. Fifth, the currency derivative is USD Futures. 4. ETF Exchange-traded fund or ETF is an open-ended mutual fund which is traded on the pains exchange. Through brokers, ETF investors can buy and sell at any time during the trading hours at the prevailing price when the order is executed.The main difference between blueprint mutual funds and ETF is that mutual fund is normally traded via asset forethought company or a fund issuer at the end of the trading day eyepatch ETF has real-time NAV or Indicative NAV which is mensural throughout the trading hours. With the help of designated market maker or liquidity provider, it allows investors to trade at the market price at any time. ETF is a passive management fund since it basically invests in a basket of underlying stocks which can be SET 50 Index, a stock sector index, trade good index and commodity price such as notes price and oil price.Mostly, ETF is the replicate of a stock index, fashioning the expense and management fee lower for ETF. In contrast, mutual fund is more active making the cost of management more high-ticket(prenominal) as well. 5. Derivative Warrants (DW) Derivative Warrants ch annel the holder right to buy a stock or an underlying warrantor at the pre-determined price within the say period for certain quantity. The issuer of derivative warrant is a third party, not the issuer of the underlying securities. Warrants and Derivative Warrants are different in many aspects, as shown in the following table Services 1. selective information serviceDue to SET comprehensive, accurate and up-to-date source of Thai listed companies information, SET provides information service for customers who would equivalent to access and disseminate trading or listed company information either with commercial or non-commercial purpose. Major customers of this service are member companies, info vendors, presses, academic institutes, mutual funds, governmental agencies and general investors. SET Information Service is classified into 3 categories a. Datafeed (raw data for further application) b. SETSMART or SET Market Analysis and Reporting Tool c.IR website service for SET li sted companies 2. Listing service on SET Companies that are interested in listing itself on SET have to meet many rules and regulations. Being a listed company gives the company many advantages. The company will have a big source of long-term capital that is crucially important to enhance its operation, expansion and competitiveness. The company will obtain a let out and positive public image repayable to its high standard and transparency giving the company with higher bargaining power and companys credibility. Application fees initial fees Annual fees THB 50,000 0. 5% of paid-up capital ( With minimum and maximum of THB 100,000 THB 3,000,000 ) Regressive rate varies with the level of paid up capital as follows less than THB 200 M. at 0. 035 % of paid-up capital THB 200 M. Capital