Thai Stock Exchange Unveils Four-Point Plan to Restore Market Confidence

 

The Stock Exchange of Thailand (SET) has announced a comprehensive four-pronged strategy aimed at restoring investor confidence following a period of significant market turbulence and economic uncertainty.

 

Speaking at the Thailand Investment Forum 2025 seminar on Saturday, SET Chairman Kitipong Urapeepatanapong outlined the ambitious plan, which addresses regulatory reform, market appeal, legislative modernisation, and sustainability initiatives.

 

The Thai capital market has faced considerable challenges in recent months, with domestic economic slowdowns compounded by global volatility, trade disputes, and geopolitical tensions. However, Kitipong expressed optimism about the market's prospects.

 

"Every crisis presents an opportunity, and problems can always be solved with wisdom," he said. "Our immediate focus is to identify these opportunities and translate them into tangible investment."

 

 

Regulatory Overhaul

The first pillar of the strategy focuses on rebuilding market confidence through enhanced trading regulations and stronger investor protection measures.

 

The SET has already begun adjusting rules for short selling, implementing Dynamic Price Bands and Uptick rules, and registering High-Frequency Trading participants.

 

"Tighter trading regulations that close loopholes will significantly boost transparency and reduce disparities in information access and trading systems," Kitipong stated.

 

 

The exchange is also developing capabilities to investigate instances of naked short selling conducted overseas, whilst revising listing criteria for companies seeking to join both the SET and MAI markets.

 

Under the Treasury Stock scheme, over 37 Thai listed companies have repurchased shares worth more than 14 billion baht this year, with further amendments to Ministerial Regulations planned.

 

 

 

Market Development Initiatives

The second strategic pillar aims to enhance the capital market's appeal, particularly for Thailand's 3.25 million small and medium enterprises.

 

The SET is targeting companies in the "New Economy" sector, providing capital market training to 300 Thai companies and developing the Jump+ project to nurture 50 companies by 2026.

 

Interest from three to four foreign companies in listing on the Thai stock exchange has prompted the Board of Investment to refine incentive criteria and amend laws regarding dual-class shares.

 

The SET is also developing the Thailand Individual Savings Account (TISA), a long-term share savings product similar to the former LTF scheme, which is expected to inject substantial new capital into the market.
 

 

Legal Framework Modernisation

The third element focuses on updating legislation to align with evolving business models. The SET is exploring an Omnibus Law approach to consolidate fragmented legal restrictions that currently hinder capital market fundraising.

 

Key proposals include permitting dual-class share structures, which would enable high-potential SMEs and startups to raise capital whilst allowing founders to retain control.

 

Working with the Thailand Development Research Institute and the Capital Market Development Fund, the SET is implementing a "Regulatory Guillotine" to remove outdated laws.

 

The exchange is also advocating for legal reforms to grant the Securities and Exchange Commission direct investigative powers.

 

 

 

Sustainability Focus

The final pillar addresses Environmental, Social, and Governance (ESG) factors, which Kitipong described as "crucial and unavoidable."

 

The SET is committed to driving sustainable growth within the market, including ESG training and the future adoption of an ESG data platform in partnership with FTSE.

 

"We are dedicated to providing the best possible care for investors, through both controlling market behaviour and implementing appropriate penalties to prevent recurrence," Kitipong said.

 

The chairman concluded by emphasising the role of artificial intelligence in enhancing regulatory oversight and data analysis, stating: "I believe that in every crisis, there is an opportunity, and the SET will always stand by investors."

 

The comprehensive strategy represents the SET's most significant reform effort in recent years, as Thailand's capital market seeks to regain its footing amid challenging domestic and international conditions.