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The Inventory Alternate of Thailand (SET) has proposed a rise within the inventory market capitalisation requirement for securities eligible for short promoting, together with a threefold enhance in fines for rule violations. This transfer types a part of the SET’s technique to boost market supervision and bolster investor confidence.

These adjustments, that are topic to a public listening to, suggest to boost the market capitalisation requirement from the present 5 billion baht to 7.5 billion. The brand new measures additionally embody the introduction of a inventory liquidity rule, requiring companies to have a month-to-month buying and selling quantity exceeding 2% of month-to-month turnover in these securities, reported Bangkok Publish.

The SET assertion additional revealed plans to instate further standards to mitigate the impacts of short promoting. As an illustration, if a inventory’s worth falls by over 10% from the day past’s closing figures, the short sale worth should be higher than the newest worth underneath the uptick rule. This rule, a prevalent monetary regulation, stipulates that short gross sales should be performed at a higher worth than the previous commerce.

Furthermore, the SET intends to impose a each day restrict on the short-selling of securities and enhance the each day disclosure of gathered short-selling quantity that is still unpurchased (excellent) for every safety.

“If there are violations of the short promoting guidelines, the fines imposed on violators will likely be thrice higher, consistent with the rules of main inventory exchanges overseas,” the SET assertion famous.

The SET additionally plans to boost the orderly program buying and selling on the trade to curb irregular worth fluctuations.

“An intra-day ceiling for worth actions [dynamic price band] will likely be set to slim the motion between the ceiling and ground costs that’s at present in use,” the SET stated.

As well as, the SET is eager on enhancing its surveillance of buying and selling orders that affect the market, when it comes to each amount and worth, by creating a central screening system to stop excessively frequent order placements.

The bourse additionally outlined plans to implement an auto-halt for particular person securities if they’re purchased or offered in portions exceeding the required stage.

Traders intending to have interaction in high-frequency buying and selling will likely be required to register with the SET for monitoring functions. The names of traders recognized as partaking in inappropriate buying and selling behaviour will likely be disclosed to all member corporations for consideration in actions similar to lowering the investor’s credit score restrict or requiring buying and selling by way of an funding advisor.

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