The House of Representatives has unanimously accepted in principle a government-sponsored bill to amend the Securities and Exchange Act, paving the way for the issuance and trading of securities in electronic form while strengthening regulatory oversight of electronic securities transactions.
The bill was approved on Wednesday by all 455 lawmakers present during a parliamentary session chaired by First Deputy House Speaker Mallika Jirapunvanit. A 25-member committee was later appointed to scrutinise the proposed legislation.
The amendment seeks to modernise the capital market laws by allowing certain securities to be issued electronically and by introducing penalties for violations of regulations governing electronic securities.
During the debate, Bhumjaithai Party MP for Phitsanulok Chuti Krairiksh welcomed the bill but warned Thailand still lags behind many countries in developing its capital market framework.
He said modernisation must go hand in hand with stronger corporate governance and more effective measures against market misconduct.
Mr Chuti also said the capital market facilitates fundraising worth about 6 trillion baht, exceeding the government's annual budget, while the value of securities regulated by the Securities and Exchange Commission (SEC) is even larger than the country's gross domestic product.
If regulatory oversight and governance standards can be improved, the capital market could become a major driver of economic growth, job creation and investment, he said.
Mr Chuti also called for stronger enforcement powers for state agencies, including the SEC, the National Anti-Corruption Commission, the Bank of Thailand and the Anti-Money Laundering Office.
He suggested a specialised court to handle major financial cases involving large losses and significant numbers of affected investors. He said legal proceedings often take months or years, while digital technology allows assets to be transferred across borders within minutes.
Responding to lawmakers' concerns, SEC secretary-general Pornanong Budsaratragoon said the bill's primary objective is to update securities laws to fully accommodate the issuance and trading of electronic securities.
She said the benefits would extend to businesses of all sizes, particularly small and medium-sized enterprises, as well as retail investors seeking easier access to Thailand's capital markets in the digital economy.
Ms Pornanong said the legislation does not create a new category of digital assets.
Instead, she said, it allows existing securities such as shares, bonds and investment units to be issued or traded electronically under the existing securities and capital market regulatory framework.
She also pledged the SEC would continue to prioritise investor confidence and trust, adding that any legal loopholes identified in the future would be addressed without delay.
