The Thai Securities and Exchange Commission (SEC) Aims to Transform Capital Market into a Digital Landscape
The Securities and Exchange Commission (SEC) in Thailand has set a goal to establish a “digital capital market” in the country. By promoting the use of digital technology throughout the entire capital market process, the SEC aims to enhance transparency, verification, and cybersecurity in accordance with international standards. This initiative aims to bring together all stakeholders within the market, ensuring that they operate within the same system and adhere to standardized practices. The ultimate objective of this transition is to foster sustainable growth for Thailand’s capital market, enabling it to effectively compete with foreign counterparts and unlock the country’s economic potential.
Key Steps towards a Digital Capital Market
The SEC has outlined a strategic plan to transition to a digital capital market, focusing on enhancing the country’s economic potential. To achieve this goal, the SEC has simultaneously taken several important steps, including:
- Developing an ecosystem that supports competition
- Modernizing laws and regulations to align with the digital age
- Bringing technology and innovation into capital market development and supervision
- Adapting to a digital organization for efficient service delivery
In early 2023, the Cabinet approved four capital market laws that support the move towards a complete digital system. These laws include the Securities and Exchange Act, the Futures Act, the Trust Act for Capital Market Transactions, and the Act Amending the Royal Decree on Digital Asset Business Operations.
To promote the development and supervision of the capital market, technology and innovation play a crucial role. The SEC plans to utilize technology to enhance efficiency in preventing and investigating wrongdoing within the market through e-enforcement initiatives. Additionally, the Digital Infrastructure Development Project (DIF) aims to connect all stakeholders in the capital market, enabling seamless and standardized operations.
By embracing digital transformation, fundraisers looking to issue securities will benefit from reduced steps and processing time, while investors will have access to end-to-end digital services, including account opening, order placement, portfolio information, and investor rights notifications. Intermediaries will operate under a single-source data set, minimizing errors, and work time. Regulators will receive paperless, digital information on securities issuance, facilitating policy decision-making for future capital market development.
The DIF development is currently under a sandbox environment to ensure a smooth and fully-functioning system. Private businesses will be able to issue bonds through a 100% digital process, with plans to extend this digitalization to other types of securities issuance.
Facilitating a Digital Organization
Recognizing the need to adapt to a digital landscape, the SEC aims to transform into a digital organization. This approach ensures quick access, easy understanding, and prompt results for all services provided. Under the SEC Digital Services development plan, various services related to the capital market, such as e-Licensing, e-Documentation, and e-Reporting, will be offered to market entrepreneurs.
The SEC also caters to the public sector through the development of applications like “SEC Check First” to safeguard against investment fraud risks. Additionally, tools like “SEC Bond Check” and “SEC Fund Check” facilitate easy access to bond and fund information, respectively. The SEC Open Data service provides extensive data for the capital market and the digital asset market, allowing all sectors to leverage the information for further innovation.
Driving Growth Opportunities for SMEs/Startups
The transition to a digital capital market opens up opportunities for SMEs and startups to access funding more easily. Through crowdfunding and value-raising strategies, many SMEs and startups have already leveraged the capital market as a funding source. In April 2023, crowdfunding campaigns raised a total value of 2,142.59 million baht.
The development of the Thai capital market into a digital landscape, as part of the SEC’s strategic plan, will foster sustainable growth. By enhancing its competitive potential, the Thai capital market will be able to effectively compete with foreign counterparts, contributing to a stronger, progressive, and sustainable economy.
Securities and Exchange Commission
Economy/Money4 Jul 23 16:27
the development of the Thai capital market towards A “digital capital market” is one of the goals of the Securities and Exchange Commission (SEC) by encouraging the Thai capital market to operate at all stages by using digital technology as a tool that helps facilitate and speed up transparent and verifiable Cyber security is maintained in accordance with international standards. Can connect all capital market stakeholders to be in the same system and standard. for Thailand’s capital market to grow sustainably to be able to compete with foreign capital markets and improve the country’s economic potential
A transition to a digital capital market is outlined in the SEC’s strategic plan with the key aim of improving the country’s economic potential. And to achieve this goal, the SEC has taken several steps simultaneously as follows:
Developing an ecosystem that can support competition An important way to develop an investment ecosystem is
Modernizing laws and regulations in many areas, which the SEC has continuously implemented by promoting operations and carrying out electronic transactions in the capital market to keep up with the environment and context of the flexible digital age investment world and able to cope with situations that may change in the future while maintaining appropriate supervision
At the beginning of 2023, the Cabinet has approved in principle 4 capital market laws, which include:
(1) Draft Securities and Exchange Act, (2) Draft Futures Act, (3) Draft Trust Act for Capital Market Transactions, and (4) Draft Act Amending the Royal Decree on Digital Asset Business Operations Promoting the a move towards the digital capital market in a complete system
Bringing technology and innovation to promote the development and supervision of the capital market. Including the use of technology to increase efficiency in the prevention and investigation of wrongdoing in the capital market. (E-enforcement) and develop a digital infrastructure development project (Digital Infrastructure: DIF), which will connect all stakeholders in the capital market with the same system and standards throughout the industry, whether
Fundraisers who want to issue securities for sale All steps are in digital format, reduce steps, reduce processing time.
Investors can receive end-to-end digital services from opening an account. Place an order
Receive securities into your account Show portfolio information Notice of investor rights
Intermediary Standard operation with the same data set (single source), data will be automatically saved and forwarded to relevant departments. This will reduce errors and work time. It also ensures that the information used is complete. correct
regulator Receive information and notify the results of the issuance of securities in a digital format that is paperless This will help to reduce the overall process of issuance in another way Sufficient information to decide on appropriate policies for development. future capital market business
DIF development is under the sandbox *, which is a development and testing area to ensure the system is fully launched. Can allow private businesses to issue bonds under a 100% digital system and this development will continue to expand to complete other types of securities issuance.
Adapting to a digital organization when setting a goal to step into the digital capital market The provision of the SEC’s various services must be transformed into a digital organization, with all operations under the principle of “quick access, easy understanding, quick results” as seen from today onwards. The SEC provides services to all sectors related to the capital market in accordance with the SEC Digital Services development plan, such as providing services to capital market entrepreneurs such as e-Licensing, e-Documentation and e-Reporting.
For services for the public sector, the SEC has developed applications such as “SEC Check First” as a tool to protect against the risk of investment fraud. The public or investors can use such tools to check the information of individuals, persons jurisprudence and those investment products “SEC Bond Check” as a tool to help find bond information easily and conveniently “SEC Fund Check” as a tool to help search and compare fund information The SEC Open Data service is also available at for the capital market and the digital asset market. so that all sectors can take advantage and develop further innovations
The move towards digital capital markets also opens opportunities for capital markets to be an easier source of funding for SMEs/Startups Currently, many SMEs/Startups can leverage capital markets through crowdfunding and raising value. Capital increased steadily In 2023, at the end of April Money was raised through crowdfunding with a total value of 2,142.59 million baht.
Developing the Thai capital market into a digital capital market in line with the SEC’s strategic plan will promote the sustainable growth of the Thai capital market. It can compete with foreign capital markets and is one of the key mechanisms for driving the Thai economy to be strong. progressive and sustainable
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