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.
  • Background
  • 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).
  • Effectiveness
  • Comment period closes Nov. 5, 2019.

Regulators Thai SEC
Entity Types B/D; IA
Reference CP, 136/2019, 10/8/2019
Functions Compliance; Financial; Legal; Reporting; Risk
Countries Thailand
Products Fixed Income; Securities
Regions AP
Rule Type Proposed
Rule Date 10/8/2019
Effective Date 11/5/2019
Rule Id 65992
Linked to
Reg. Last Update 10/8/2019
Report Section International

Last substantive update on 10/09/2019