Bangkok--1 Apr--SEC
The SEC permits the 51th- 100th shares in the SET100 Index as underlying securities for Derivative Warrant (DW) and revises the process of DW issuance and offering to facilitate the private sector. The revised rules are expected to become effective soon.
With a view to increasing the variety of investment choices, underlying securities for DW will be expanded from the shares in the SET50 Index to those in the SET 100 Index, providing that
quarterly average market capitalization value of the 51th-100th shares in the SET 100 index must be no less than 10,000 million baht in the latest four consecutive quarters. The Stock Exchange of Thailand (SET) will provide calculation and announcement lists of qualified securities at the end of each quarter.
Moreover, the approval and filing procedures for DW issuance will be shorten and require fewer documents in order to increase efficiency while impact of price risk will also be mitigated. An automatic approval will be introduced and apply to the qualified DW issuers. In addition, the redundant information disclosed and signing requirement in the filing will be eliminated.
SEC Secretary-General Vorapol Socatiyanurak said “The revision of DW issuance rules intends to facilitate the private sectors in many areas to reduce their burdens and increase the offering efficiency process, diminishing impact of change in price of underlying securities. For investors, an increase of underlying securities for DW not only provides a wider variety of investment choices but also more tools for hedging against risk associated with the investors ‘portfolio.”