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03 February 2013

Securities And Exchange Commission : Introduction to the SEC

The Securities and Exchange Commission,Thailand was established in 1992 and performs the functions of the capital market supervisory agency with the status of an independent state agency.
The SEC was founded under the promulgation of the Securities and Exchange Act B.E. 2535, with a mission to:

“Develop and Supervise the Thai Capital Market to Ensure Efficiency, Fairness, Transparency, and Integrity”.

The SEC’s 2010 - 2012 strategic plan focuses on four major goals:

1. maintain orderly market
2. ensure investor protection
3. foster business innovation
4. promote competition

SEC’s History

The development of the country’s capital market is considered to be an important source of funds for medium to long-term investment. It enables entrepreneurs who are in need of capital for their business operations to mobilize funds directly from the public by issuing and offering diversity of securities. Public issuance and offering of various securities allows businesses to raise funds at lower cost than the conventional medium through loans from domestic and foreign financial intermediaries. The development of the capital market thus plays a crucial role in enhancing as well as fortifying the stability of the overall economic system.

Despite the fact that the Thai capital market plays such a crucial role in the country’s economic system, in the past, the supervision and development of the Thai capital market was governed under various laws and regulations. To initiate a new legal framework and mark a new era for the Thai capital market, on March 16, 1992, the Securities and Exchange Act B.E. 2535 (1992) or “the SEC Act” was promulgated and came into force on May 16, 1992 so as to reinforce the unity, consistency, and efficiency in supervision and development of the market. The enactment of the SEC Act empowered the Securities and Exchange Commission, Thailand to be established as an independent state agency with responsibility for supervision and development of the capital market under the direction and guidance of the Board of the SEC.

On July 3, 2003, the Derivatives Act B.E. 2546 (2003) was promulgated and came into force on January 6, 2004 so as to create a legal certainty for derivative contracts, provide a regulatory framework for derivatives markets and intermediaries, and allow the SEC to