Bangkok--25 Oct--SET As part of its preparation for long-term capital market liberalization, The Stock Exchange of Thailand (SET)’s Board of Governors today (October 24) passed resolutions on conditions applying to internet trading, remuneration of marketing executives and brokerage fees for foreign partnerships. SET will extend the internet trading condition requiring investors to use ”cash balance” or ”credit balance” accounts to qualify for the reduced brokerage fee of 60% of the normal rate or a minimum brokerage fee of 0.15% of trade value. Trading using other types of accounts will incur a minimum fee of 0.20%, as previously determined. The board has also extended the transition period for remunerating marketing representatives in the incentive scheme, by allowing securities firms to pay them no more than 27.5% of companies’ monthly brokerage revenue. The extension will run from end-2007 to end-2009. The board will also maintain the rule on brokerage fees charged to foreign brokerages which have exclusive partnership agreements with Thai brokers. Cash balance accounts require front-end cash as collateral, while holders of credit balance accounts may trade on the credit line they have with their securities firms, SET Executive Vice President and Board Secretary Mr. Suthichai Chitvanich said. “These actions will help expand the investor base. There has been a 17% increase in internet investors from end-2006 and the proportion of internet to total trading has almost doubled. Today’s decisions also reduce risks to member companies and promote long-term investment discipline,” Mr. Suthichai added. The decision concerning the remuneration of marketing representatives will postpone implementation of the previous decision stipulating that up to 25% of their incentive-based income be paid six-monthly, and be based on qualitative factors. However, SET insists that, because both quantitative and qualitative factors are necessary to develop securities firms’ services and build customer confidence, marketer remuneration assessment must include factors other than simply trading value. The Exchange will call an extraordinary meeting of its members to consider these matters and will subsequently seek approval from the Securities and Exchange Commission. Regarding brokerage fees for a foreign broker having an exclusive partnership with a Thai broker, the foreign brokerage firm will be charged at no more than 60% of the minimum rate provided that the Thai and foreign partner have a mutually exclusive agreement, and that the foreign party charges its customers or end-clients at no lower than 0.25% of trade value, and that the partnership includes knowledge and/or technology transfer. SET wants member firms to expand their business with foreign brokers and involve more foreign customers. Today’s decisions will better prepare them for the liberalization of securities business and brokerage fees scheduled for 2012. Along the way to liberalization, most brokerage fees will be changed from current to regressive rates, with trading exceeding THB 20 million at a fully negotiable rate. These measures and the partnership rule are simply part of the Thai securities and capital market’s transition to liberalization. For more information, please contact the Corporate Communications 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