Thai SEC Bond Market Regulations
On Oct. 8, Thai SEC proposed changes to bond market rules.
- Made draft amendments to the rules and regulations for the bond market.
- As the bond market has grown and environment has changed, the associated risk has changed instruments that do not have credit ratings or are below investment grade.
- Over half are sold through a channel not subject to public disclosure requirements.
- Additionally, the information used for investor decisions is not complete and clear.
- New Guidelines
- Adjust the type of investors who will access the PP-10 offering channel, the channel to sell risk-weighted securities to investors, to sell only to executives, institutions.
- Increase the qualifications for applicants for offering debt securities to large investors.
- Licensor must not be in default of debt repayment or loan consistent with other rules.
- Improve the disclosure by requiring that financial risk exposures are explained.
- Increase the frequency of submitting financial reports more frequently and faster.
- Increase data quality for decision making by adjusting the fact sheet of the prospectus slightly and assigning a risk scale to help compare the risk between the instruments.
- Add data to compare the financial ratio and the return of the debentures.
- Increase the management mechanism in the event of default payments, such as requiring the issuers and securities registrars to report the default to the office.
- Adjusted conditions for the offer of medium term notes (MTNs).
- Comment period closes Nov. 5, 2019.
||CP, 136/2019, 10/8/2019
||Compliance; Financial; Legal; Reporting; Risk
||Fixed Income; Securities
|Reg. Last Update
Last substantive update on 10/09/2019