Bangkok--26 Apr--SET
The Stock Exchange of Thailand (SET)’s board of governors on April 25 approved a process for companies unable to adjust their financial statements by the deadline specified by the Securities and Exchange Commission (SEC). Such non-compliance will now be one of the several criteria for delisting from SET. Only 1% of all SET-listed firms have to adjust their financial statements in line with SEC orders.
The SET’s board resolved that, as of May 2, 2007, listed firms that SEC has ordered to adjust their financial statements by a specific date (including any extension), will have another 30 days to resolve their problems. After that, they may be subject to delisting, SET Executive Vice President and Board Secretary Mr. Suthichai Chitvanich stated.
For companies unable to comply with the SEC deadline, SET will announce that they are subject to delisting and post both an “NC” (for non-compliance) and an “SP” (for suspension) sign to suspend their trading. The companies will have another 180 days after the announcement to submit their adjusted financial statements. If they fail to do so, SET will announce the delisting but allow their securities to resume trading for 30 days prior to the delisting date.
To remove the danger of being delisted, the company must adjust its financial statements as per SEC’s order and submit its statements within deadlines for two consecutive periods. An auditor must also approve the adjusted statements as conforming to generally accepted accounting principles (GAAP). Also, the auditor must not have made a disclaimer of opinion due to restrictions on the auditor’s ability to carry out an audit.
The above measure is similar to an existing SET rule concerning the delisting of firms that submit financial statements after the 180-day deadline.
“Nearly all listed companies submit their financial statements on time and do not need adjustments,” Mr. Suthichai said. “In 2006, only 1% of listed firms had to adjust their financial statements. The financial statements are material information essential for making investment decision. Late submission or inaccurate information may be a sign of the firm’s performance, financial stances, or internal operation, which may affect investors. Having determined a measure for companies whose financial statements need adjustments as per SEC order should help accelerate the adjustment. Quicker distribution of material information should benefit as well as protect the rights of investors.”
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797