Bangkok--5 Sep--SET
“The true origin of funds invested in listed firms can be traced even though the purchase was done through a private fund. Perhaps for this reason, no private funds have been found misused to hide ownership”, Executive Vice President of The Stock Exchange of Thailand (SET) Mr. Vichate Tantiwanich noted. His statement was to prevent misperceptions arising from a local article on private funds, which alleged that some funds were acting as nominees for stock purchases.
“A private fund is for those who do not have time to manage their portfolio efficiently, and who thus assign an investment management company to do the job instead. The fund manager will allocate the client’s funds into various types of instruments. Such funds can be efficient and thus are widely-used internationally. If a fund invests in stocks and any abnormalities are suspected, SET will definitely be able to uncover the true source of funds”, he went on.
SET has been monitoring every transaction, including those involving private funds. It has found no cases wherein a private fund was involved in price manipulation, caused usual price movement, or used to cover up the real investor. If SET suspects an abnormality, it immediately obtains the client’s identity from the securities firms involved in a given transaction, regardless of whether the customers are individuals or fund managers.
Also, as per the registry book-closing rules, any transactions the securities companies have conducted on behalf of investment management companies, including information on clients, can be examined by SET as well.
Moreover, according to Securities and Exchange Commission (SEC) rules, once a person acquires every 5% of the securities sold, one must report this fact to the SEC and SET.
In Thailand, private funds must be managed by investment companies that have been approved by the SEC.
For more information, please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797