The Stock Exchange of Thailand (SET) and the Office of the Securities and Exchange Commission (SEC) organized the "LiVE Demo Day: The New Road to Capital Market" on September 14, 2021, to highlight role in inclusively offering capital market funds to small and medium-sized enterprises (SMEs) and start-ups. The event's keynote speech was delivered by Finance Minister Arkhom Termpitayapaisith on the strategic approach to lift entrepreneurs' competitiveness. Investors, entrepreneurs and interested public were also invited to attend a virtual conference where 21 potential SMEs and start-ups presented their profile and success stories.
SET President Pakorn Peetathawatchai said 'LiVE Demo Day: The New Road to Capital Market' would present all aspects of solutions in line with the government's policy to move forward to the future strongly and sustainably. Significantly, it was a great honor that Finance Minister Arkhom Termpitayapaisith addressed a keynote speech on 'Strategies to Promote SMEs/Start-ups, Develop Capabilities and Drive the Thai Economy'.
"SET has made progress with a role to enhance SMEs and start-ups to grow further via the capital market's mechanism". SET has continuously developed LiVE Platform to prepare their readiness to enter the capital market and, together with partners in all sectors, has initiated services to meet entrepreneur demand, such as e-Learning programs to share basic and in-depth knowledge, business coaching via LiVE Acceleration Program, and LiVE Incubation Program."
"Innovatively, SET will establish LiVE Exchange, a secondary market to serve as a new trading board for the initial public offering (IPO) of SMEs and start-ups. SET and the SEC are formulating related regulations to equip them with an additional channel to raise funds while public hearings have already been conducted. In addition, SET has teamed up with securities companies to develop a trading system for LiVE Exchange with different trading and supervisory mechanism from those of SET and Market for Alternative Investment (mai). The new exchange's trading approach will be auction-based at one round of trading per day, and settlement and delivery will be completed on the day of trading. The types of investors are restricted to fit well with their risk appetite. Initially, more than 25 securities companies have expressed their interest in participating LiVE Exchange expected to be launched within 2021," Pakorn said.
SEC Secretary General Ruenvadee Suwanmongkol stated that the SEC, as a regulatory agency responsible for capital market supervision and development, realizes SMEs' and start-ups' importance and role on the Thai economy. The SEC has directed concrete policies to make the Capital for All, aiming at enhancing the Thai capital market to be the vital funding source for all business sizes and categories including SMEs and start-ups. The move is in line with the master plan under the 20-year national strategy (2018-2037) and the third capital market development plan (2017-2021).
"The SEC has continuously supported SMEs and start-ups to access to funding source in the capital market and made great strides step by step in terms of regulations to facilitate fundraising while providing knowledge about the capital market particularly the fundraising process. To efficiently reach target entrepreneurs, the SEC has collaborated with related agencies to formulate regulations on SMEs' private placement (SME-PP), and eased the crowdfunding regulations," Ruenvadee said.
As of August 31, 2021, 83 entrepreneurs raised funds totaling THB 795 million (approx. USD 24.32 million) via SME-PP and crowdfunding. Moreover, the SEC has joined hands with SET to launch public offering regulations for SMEs and start-ups (SME-PO) to list their stock on LiVE Exchange. The regulations have been eased in some areas to suit this sector of entrepreneurs but with proper investor protection principles still in place. SME-PO regulations are expected to take into effect within this year (2021).
The development of SMEs and start-ups via LiVE Platform received support and cooperation from about 25 partners inclusively in public and private sectors, the capital market, and universities. Besides, financial support has also been granted by Thailand Capital Market Development Fund (CMDF) for project development, as well as for SMEs and start-ups.
"LiVE Demo Day: The New Road to Capital Market" was organized on September 14, 2021 at 10.00-16.30 hrs., in the form of a virtual conference, consisting of various interesting seminars, especially presentation of 21 SMEs and start-ups from the LiVE Acceleration Program 2020 regarding their business strengths and growth potential that will lead to their fundraising in the future.
For more details of the conference, please visit www.facebook.com/LiVE.Platform.SET/, www.facebook.com/set.or.th, and www.youtube.com/setgroupofficial.