Rachada Dhnadirek, spokesperson for the Prime Minister’s Office, said the government is pursuing a policy to develop Thailand’s capital market as a key mechanism for supporting national economic growth.
The capital market serves as an important channel for businesses to raise funds while providing the public with opportunities for savings and investment. To strengthen the system, the Cabinet on Tuesday approved a proposal from the Ministry of Finance to amend four key capital market laws.
The amendments are designed to support the appropriate use of technology in capital market transactions, clarify regulatory oversight, and improve the efficiency of law enforcement.
The four draft laws are:
- Draft Securities and Exchange Act (Amendment No. …) B.E. …
- Draft Derivatives Contracts Act (Amendment No. …) B.E. …
- Draft Capital Market Trust Act (Amendment No. …) B.E. …
- Draft Act Amending the Digital Asset Business Act B.E. 2561 (2018) B.E. …
Rachada said the amendments would help strengthen Thailand’s capital market in three key areas: modernizing and improving market efficiency, strengthening investor confidence, and enhancing financial stability through more effective supervision and law enforcement.
The reforms will also improve oversight of fundraising activities and key participants across the capital market, including business operators, secondary markets, related organizations and capital market service providers.
According to Rachada, the amendments are expected to help establish a more credible, transparent and competitive Thai capital market over the long term. They are also intended to bring Thailand’s regulatory framework closer to international standards while preparing the country’s capital market for the future digital economy.
Key Amendments to the Four Laws
1. Securities and Exchange Act
The proposed amendments focus on three major areas.
First, they aim to strengthen oversight of digital infrastructure providers and systems that are significant to the capital market, while establishing clearer legal provisions for the electronic transmission, receipt, advertising and publication of documents and information.
Second, the amendments would strengthen supervision of key capital market gatekeepers, including auditors and auditing firms, financial advisers, asset appraisers, credit rating agencies—both domestic and international—and personnel working in the securities business. The changes would also allow for more direct oversight of auditing firms across the gatekeeper chain.
Third, the amendments would strengthen law enforcement mechanisms. Securities and Exchange Commission (SEC) officials would be given greater authority to conduct joint investigations with private investigators or special investigative officers in cases considered to have a significant impact on the capital market. The proposed legislation would also restructure penalties, including fines, to better reflect the severity of offenses.
2. Derivatives Contracts Act
The proposed amendments would clarify and facilitate electronic processes involving the delivery and receipt of documents and information, as well as electronic advertising and announcements.
They would also expand joint-investigation powers, allowing SEC officials to work with private investigators or special investigative officers in high-impact cases to improve the efficiency of investigations and enforcement.
3. Capital Market Trust Act
The proposed amendments would support and clarify the use of electronic processes for sending and receiving documents and information, as well as electronic advertising and announcements.
The changes are intended to make transactions more convenient while reducing the time and administrative burden for members of the public and businesses.
4. Digital Asset Business Act B.E. 2561 (2018)
The proposed amendments would expand joint-investigation powers, enabling SEC officials to work with private investigators or special investigative officers in high-impact cases.
The changes are aimed at expediting investigations and improving the efficiency of the pre-litigation process in digital asset-related cases.
Rachada said the four legislative amendments represent an important step toward modernizing Thailand’s capital market regulatory framework, improving enforcement and strengthening confidence among investors and market participants as the country moves toward an increasingly digital economy.
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