Bangkok--4 Apr--SEC
The SEC will revise the rules determining the proportion of investment unit holdings in retail funds to allow greater dispersion of unit holdings, as well as to ensure no exploitation of this channel for the benefits of certain person or group of persons.
Mr. Vorapol Socatiyanurak, SEC Secretary-General, said “In establishing a retail fund, its investment units should be dispersed thoroughly to the investing public; thereby limiting chances for a certain person or group of persons to exploit it as a channel for seeking benefit or intervening the fund’s operation. The SEC will therefore revise the rules to allow a person or a group of persons to hold investment units of any retail fund not exceeding one-third of the total units sold.
In case of exceeding the unit holding limit as specified, the asset management firm must disclose the information to investors for investment decisions; as well as rectify such non-compliance within two months. Failure to do so may cause the asset management firm to be prohibited from business expansion. In addition, in case where an increase of investment by any person or a group of persons causes the one-third limit to be exceeded, the asset management firm must neither count the votes over the limit nor pay dividends for such excess holdings.
Some types of unitholders are, however, exempted from the one-third limit, such as, the Government Pension Fund, the Social Securities Fund, provident funds; or juristic persons established under Thai law that are exempted from revenue tax, such as, foundations and temples, etc.