The cabinet on Tuesday approved the amended draft bill of the Securities and Exchange Act 1992 to upgrade the Thai capital market to conform to global standards by starting a Capital Market Development Fund (CMDF), together with developing an electronic trading platform to serve digital trading demand.
Nathporn Chatusripitak, a spokesman for Deputy Prime Minister Somkid Jatusripitak, said the amended draft bill covers an improved definition of securities, the paid-up capital requirement for securities firms, and the supervisory power of the Securities and Exchange Commission (SEC).
The draft calls for the establishment of the CMDF, which will function as an independent organisation that will be tasked with promoting Thai capital market development, human resources and infrastructure for the Stock Exchange of Thailand (SET) and R&D for capital market development.
The SET is required to financially support the CMDF and transfer 5.7 billion baht as a seed fund to it within 90 days after the bill comes into force.
Under the new law, the SEC will be also empowered to order listed companies to organise shareholders' meetings if listed companies are suspected of harming the shareholders and not organising annual meetings.
Executives and committees who do not organise shareholders' meetings will be subject to fines of up to 100,000 baht and one year of imprisonment.
Companies that refuse shareholder requests to hold meetings will be fined up to 300,000 baht or a fine of up to 10,000 baht a day until the company calls the meeting as requested.
The new Act also calls for the SEC to form a capital market development plan and submit it to the Finance Ministry for approval.
Mr Nathporn said the cabinet yesterday approved the Commerce Ministry's ministerial regulations to charge new business registration fees at a flat rate, as suggested by the World Bank.
The registration fee for the partnership business will be cut to 1,000 baht from 1,000-5,000 baht, and to 5,000 baht from 5,000-25,000 baht for limited companies.
New businesses that register online will get an additional 30% discount to encourage e-registration.
The ministry estimated revenue from the new business registration fee will drop to 300 million baht a year from 500 million baht. However, flat rates will facilitate investors and cut private investment costs.
