The stock exchange issued a 3-year plan (67-69) to accelerate the confidence-building process. Increasing investment possibilities This year, artificial intelligence technology will be used, hoping to help deter fraud. Investor protection Get ready to summarize the results of the Naked Short Trading Program study in early February, including monitoring the quality of listed companies. Increase the competitiveness of the Thai capital market Support companies with the ability to register and attract investors through the LiVE platform, while continuing to distribute contact information to the new generation. To attract additional investments now that the number of new generation investors has approached 40%, we are also working with partners to raise the level of SET ESG assessment to global standards.
Mr. Phakorn Pitatawachai, Director and Director, Stock Exchange of Thailand (SET) After unveiling the SET's plans, the SET began to increase supervision of listed companies throughout the process. From the beginning of registration maintain its status as a listed company until cancellation by working with the SEC or the SEC and related agencies. – Raising confidence in the capital market. We are ready to enter the fiftieth year of developing the capital market so that all sectors can benefit from it, in light of the vision of “making the capital market work for everyone” through the stock exchange’s strategic plan 2024-2026, “creating a high-quality capital market” towards sustainable growth. “In 3 main areas: raising confidence in the capital market, enhancing competitiveness and supporting the trend towards sustainability
In Plan 2024, SET remains committed to building and improving trust in the capital market as a top priority mission by conducting financial statement health checks, monitoring the quality of listed companies (L&Cs), and raising the level of supervision. Monitor trading with our Surveillance Prevention and Analytics (SPA) system and use artificial intelligence (AI) to help analyze trading data. Including using it to help warn investors when abnormalities are detected. Including coordination with partners such as the Thai Bond Market Association (ThaiBMA) after irregularities were found in more and more bonds. To link the business data of listed companies and ready for processing.
It will work to develop systems and tools to protect investors by linking information inside and outside the market using artificial intelligence to help detect fake news spread on social media. To protect people from investment fraud, including providing information quickly and timely because we realize that issuing various regulations, even if they are good standards, cannot keep pace with the rapid changes in today's world, as is the case with MORE or More Return Public Company. Limited and STARK or Sta. The emergence of a limited company on the capital market is a very good case study. Because it is considered intentional fraud.
but Improving confidence in the capital market is an ongoing effort. Which led to raising the level of supervision in 5 steps, which are increasing the qualifications of companies for registration, increasing supervision of companies that suffer from problems in operating performance by adding reasons for C-sing, and adding a system to detect abnormal trading. Study guidelines for establishing a “Securities Office,” adding reasons for delisting and forcing companies to disclose more when there are suspicious reasons. In hot trading situations, trading information about the program must be disclosed.
Prepare to outline standards for controlling hot inventories and deterring fraud.
Mr. Fakorn discussed the impact of scams and investor deception. Believed and invested last year even causing damage to the entire system Last year, SET hired a global consultant such as Oliver Wyman, an expert in communication technologies. Come take a look at the system and see how things are done. Or the practice of prohibiting bare pants and supervising trading programs and what are the relevant regulations that the Authority has not implemented with global standards. It is expected that the results of the study of the securities trading system will end at the beginning of February before it can begin its operations in the first quarter of this year. year. Which should be discussed with the SEC prior to closing to hear the opinions of all parties.
At the same time, SET is still in discussions with the Securities and Exchange Commission Bureau and the Association of Securities Exchange Companies of Thailand (ASCO) to find measures to provide members with a database of people who come to trade with inappropriate or in-trading behavior. Manipulating prices (stock manipulation) to enable broker members to deal with those who will come to obtain benefits in violation of established rules.
“This year, the SET will focus on working to raise confidence in the capital market. This is because there is a recommendation from the Stock Exchange’s Board of Directors that there should be a clear success indicator or KPI for the organization. Including trading supervision. In the past, the SET has received evidence about 4 Cases of naked short transactions, but after investigation, it turned out that they were naked short transactions. The SET was open to receiving potentially suspicious information. Suspicious and ready to be examined If anyone has questions or has information, they can contact the exchange immediately. Because some matters We have to follow it on a trade by trade basis. Mr Fakorn said.
Regarding the criteria for temporarily stopping securities trading (Auto Halt) in stocks that are trading abnormally. Including the use of a securities auction trading system which will determine the trading period. Currently, SET and SEC are still studying. And many other matters, the CGE will be open to hearing opinions. To find a summary and is considered as a standardization together to help prevent, deter and improve the Thai stock market. It may not be easy. But when many parties work together it will make the system stronger. Reducing violations that must be corrected in the short and long term
Preparing to introduce new standards for listed companies in the second quarter of this year.
Pawena Srivothong, Deputy Director, Head of Market Surveillance, SET. Discuss the progress made regarding the supervision of listed companies or newly listed shareholding limited liability companies. It will focus on operating results and financial condition. That is, for a company to enter the MAI or mai market, net profit criteria must be evaluated for 2-3 years, from the past when only one year was used. To see the continuation of profits as well as the registered capital. In addition, there is the issue of distributing the shareholding to small shareholders or free circulation of each share. Because currently there are 20 to 25 listed companies with low free float and SET is currently abolishing the fee. Because usually an additional fee will be charged for this group of shares every year. But the procedure will be used to raise the C mark for one year. If this cannot be fixed, the SP will be suspended and eventually canceled accordingly.
In addition, the SET will increase measures to provide more information to investors, such as increasing the C-mark suspension event to warn investors. Including actions that may require investors to purchase shares in 100% cash to reduce risks that may occur. In case the company defaults on debt from the beginning, the information must be disclosed. It will increase the need to take action to solve this problem. Get it first before removing the hang tag.
Accurately distributing information attracts the new generation to the capital market
Renjay Chakorniphat, Deputy Director, Head of Marketing, SET. He revealed that SET is in the process of pushing Thai people to use the capital market to build wealth or increase assets in the long term. By trying to attract more new investors to the Thai stock market. Because at present, it is found that there are a total of 5.5 million stock trading accounts, or 2.5 million, and there is a trend of new investors entering the Thai stock market being the new generation or the younger generation, with a larger proportion, namely the Generation Y and Generation Z groups, having increased, Especially Generation Z, significantly from the original 10%, now reaching 30-40%.
Therefore, what SET should do from this is communicate more with the new generation of investors. You need to connect with this group of people to understand investing. Including recommendations and warnings to be careful in investing. By giving an understanding of how to focus on investing. Why is investing important? How to increase your wealth from the right investment? Because last year there was fake news that fooled people who were really interested in investing. Deception causes harm as a result.
Manpong Sinanarong, Deputy Director, SET He said that this year there are new companies that will offer IPO shares and that have already applied for permission, 43 companies, including 20 companies in SET and 20 companies in May, while there are 3 companies on the LiVE board of directors, most of them in the services group, the real estate group. Industry Among the companies that submitted their applications, it found 11 companies belonging to the Newseconomy business group, an important target for SET.
However, the overall condition of the stock market this year is expected to be better than last year and should be conducive to fundraising. As for the total market value of securities (Market Cap), it is a difficult issue to predict. Because it depends on the indicator and many factors affect it.
For 2023, there were new companies listed or IPO stocks. The fundraising value represents 38,260 million baht or US$1.3 billion. This is less than the usual amount of $4 billion to $5 billion. Stock trading value fell by 30% from 2022, averaging 53.331 million baht per day. It is the highest in ASEAN. As for trading volume, the futures market, or TFEX, averages 534,898 contracts per day and adds 11 products referring to securities in the stock markets of Singapore, Hong Kong, Europe and America, but it also has the seventh highest fundraising value in Asia.
but, By supporting the sustainability drive, SET has a clear goal of reaching net zero by 2050. Therefore, it is necessary to increase the potential of the Thai capital market. By bringing new high-quality industries to raise more funds in both SET and mai, such as digital and e-commerce, health, agriculture, food, etc., which is considered a good thing in 2024 due to the number of companies that will be listed. There are 12 New Economy companies that have applied for funding.
In addition, what SET attaches importance to is the environmental aspect or environmental, social and governance (ESG) recognition, which includes 28 companies in the DJSI index, the most in ASEAN, while 658 companies or 74% join the ESG data platform, which is the disclosure and linkage of ESG data.
These are the main plans SET is focusing on and there are still many smaller parts that need to be accelerated for each sector of the organization to develop. Push the Thai capital market to be at par with international standards. Another important and indispensable thing is to love and give importance to environmental things. (Environmental) Therefore, SET aims to provide knowledge to listed companies through the SET ESG Academy project and develop ESG infrastructure through the Climate Stewardship Collaboration Platform and SET Carbon projects, which are projects that extend the ESG Data Platform, along with cooperation with A global partner in raising the SET ESG assessment to global standards.
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