Finance Minister Pichai Chunhavajira has pledged to advocate for an emergency decree that would enhance the Securities and Exchange Commission’s (SEC) authority to penalize offenders swiftly.
During his keynote address on “Developing Thailand’s Capital Market to Drive Economic Growth” at an SEC-hosted event on Thursday, Mr. Pichai emphasized the importance of expediting the legal process for addressing violations and enforcing stock market regulations to foster investor trust in the Stock Exchange of Thailand (SET).
He expressed plans to support an emergency decree aimed at expanding the SEC’s enforcement capabilities, particularly for significant breaches, facilitating prompt action.
Mr. Pichai outlined three main areas where the Finance Ministry intends to bolster the SEC’s authority. First, he proposed enabling the SEC to submit case reports directly to prosecutors, bypassing police investigations, to hasten legal action in high-impact cases.
Second, he called for strengthened oversight of capital market professionals, including auditors, financial advisors, bond distributors, and bondholder representatives, to enhance investor protection.
Third, the intention is to increase penalties for those benefitting from illegal short selling, extending accountability beyond just the securities firms involved in executing the trades.
He noted that delays in enforcing the Securities Act—caused by investigations spanning multiple agencies and complex approval processes—have resulted in significant losses for investors, especially in critical cases. Bolstering the SEC’s ability to submit case reports directly would expedite legal processes, promote fairness, and strengthen investor protection.
“The ministry aims to accelerate the issuance of the emergency decree to ensure prompt enforcement,” he stated. “Once the cabinet approves it and the Council of State reviews it, the decree will take effect immediately.”
Pornanong Budsaratragoon, SEC secretary-general, mentioned that the civil penalty process against offenders has become significantly quicker, with cooperation among agencies reducing the process by up to 30%. She noted that all fines collected are forwarded to the Finance Ministry, though the investors’ compensation fund is not yet included in the emergency decree.
Mr. Pichai also shared the government’s ambition to attract foreign companies to list on the SET while encouraging Thai firms listed abroad to return to the local market.
Discussing digital assets, he observed that Thailand was a pioneer in enacting digital asset regulations but has since lagged in further development, particularly in innovation integration.
To improve the efficiency of these laws, the government aims to prioritize investor protection and promote responsible digital asset entrepreneurs with a strong compliance focus. Plans include supporting asset-backed tokens and digital securitization through a sandbox framework that fosters regulatory development.
“Government bonds could potentially be categorized as a type of stablecoin, and digital assets will ultimately serve as an alternative investment avenue for retail investors,” Mr. Pichai stated.
Regarding Thailand’s goal to position itself as a regional financial hub, he mentioned that in the first phase, the ministry aims to encourage foreign financial institutions to relocate their headquarters to Thailand. Initially, these institutions would operate solely for non-residents, thereby exempting them from domestic financial regulations, allowing for prompt implementation.
In subsequent phases, the government may consider expanding these institutions’ operations to include domestic markets.
Mr. Pichai also highlighted efforts to establish Thailand as a logistics hub, noting plans to develop an additional 800 kilometers of double-track railway. Next week, the government is expected to advance Phase 2 of the high-speed rail project, linking Thailand’s railway with the China-built railway in Laos. This connection will enable seamless land transport between the Andaman Sea and the Pacific Ocean, reinforcing Thailand’s role as a trade and financial hub.
