The Securities and Exchange Commission (SEC) yesterday announced an amended criteria for paid-up capital required for securities and derivative businesses, aiming for it to be determined based on business risks from the type of securities licences and risks.
The amendment also facilitates competition among businesses, said the SEC statement.
The minimum paid-up capital applies to businesses involved with securities and derivatives.
Businesses involved with fund management services offered solely to institutional investors are required to have a minimum paid-up capital of 10 million baht.
Businesses keeping customers' assets under their possession, mutual funds, and private funds are required to have paid-up capital of 25 million baht.
Paid-up capital of 100 million baht is mandatory for businesses who have liabilities associated with securities payment system and securities delivery.
Securities and derivative businesses that do not have the aforementioned characteristics are required to have 1 million baht in paid-up capital.
SEC secretary-general Rapee Sucharitakul said the revised regulation demonstrates readiness in terms of addressing the business models and risks of securities companies, while facilitating the development of new business models.
"[The amended regulatory criteria] does not create an unnecessary burden on the business sector," said Mr Rapee.
As Section 96 of the SEC Act governs securities trading, underwriting, the business of maintaining customers' assets in possession, or securities investment by a company, businesses falling into these categories are still required to have paid-up capital worth 100 million baht.
"The principle remains for this section until the amendment is completed," said the SEC statement.
In addition to having paid-up capital meeting the new SEC minimums, businesses must maintain their capital funds and liquidity in line with current SEC regulations.
The SEC is still adjusting these regulations to be in accordance with current business risks and expects the new regulations to come into force next year.
In a separate matter, embattled Group Lease Plc (GL) still remains in the process of finding an independent audit firm to conduct a special audit of the loan receivables offered to GL's subsidiaries in Cyprus and Singapore.
"The company has contacted and discussed with several [auditing] companies, but still could not find an appropriate candidate. The company is still searching and expects to select an [auditor] within this year," said GL in its statement.
