- SET Invites Foreigners to List
- December 10, 2009 | Authors: Sathaporn Jumsuk; Sudkhate Jungcharoen
- Law Firm: Mayer Brown JSM (Thailand) Limited - Bangkok Office
In an effort to boost competitiveness with global markets, the Stock Exchange of Thailand is opening its doors to foreign companies.
Effective 1 December 2009, foreign listed firms will be allowed to list on the Stock Exchange of Thailand (SET) provided they meet the requirements of the SET and the Thai Securities and Exchange Commission.
Thai SEC Primary Criteria for offering securities
- The home exchange must be a member of the World Federation of Exchanges.
- The home regulator must be a member of the International Organization of Securities Commissions (IOSCO) and a full signatory to the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU) or a signatory to a memorandum of understanding comparable to the MMoU.
Before listing on the SET, a foreign company must have a public offering of securities, either by issuing new shares or offering existing ones.
SET Initial Qualifications for Listing
- Listed on its home exchange for at least three years
- Have a market capitalization in the first quartile in its home country or not less than THB10 billion (as of the filing date of the application)
- Able to prove to the SET that the shares to be traded will have sufficient liquidity
- Satisfy all the same requirements as Thai companies wishing to list on the SET
Once listed, the foreign company must comply primarily with its home regulations, but it must also adhere to certain Thai regulations to ensure that local investors will obtain the same levels of protection and information disclosure as if they had invested directly in the foreign company's home exchange.