Bangkok: The Cabinet has approved four draft capital market laws aimed at promoting the digital capital market and strengthening the regulation of businesses. The approved drafts cover amendments to six key areas, including the promotion of digital capital markets, regulation of securities and futures trading businesses, secondary markets and related organizations, fundraising, regulation of auditing firms, and enhancing the effectiveness of law enforcement.
According to Thai News Agency, the Securities and Exchange Commission of Thailand (SEC) had submitted drafts of the Securities and Exchange Act (Amendment...) B.E. ..., the Derivatives Trading Act (Amendment...) B.E. ..., the Capital Market Trust Act (Amendment...) B.E. ..., and the Digital Asset Business Act B.E. 2561 (2018) to the Cabinet. The Council of State has reviewed all four drafts.
The proposed amendments can be divided into six main areas. First, promoting digital capital markets by amending laws to support electronic processes and adding provisions on significant system providers. Second, improving the supervision of securities and futures contract business operators by aligning the supervision of major shareholders and adding provisions related to personnel supervision. Third, making the supervision of the secondary market and related organizations more effective by reducing restrictions on securities trading centers and adding provisions on investment by associations. Fourth, improving fundraising and supervision of audit firms and service providers, including the issuance and offering of securities and bonds. Fifth, enhancing law enforcement by granting SEC officials investigative powers and improving penal provisions with fines in line with the 2017 Constitution and the Fines Act of 2022. Lastly, addressing other matters related to the SEC's administration.
Ms. Pornanong Busaratrakul, Secretary-General of the SEC, stated that these draft laws are vital for upgrading Thailand's capital market structure, aiming to modernize, enhance transparency, and ensure long-term competitiveness. The focus is on regulating related businesses, improving law enforcement efficiency, fostering sustainable growth, boosting investor confidence, and increasing the capital market's role in supporting the economy.
Following the Cabinet's approval, these draft laws will proceed to parliamentary review before being published in the Royal Gazette, after which they will come into effect as prescribed by law.