On 12 January 2026, Thai SEC issued proposal re short selling and SBL.
- Thai SEC consulted on proposed revisions to requirements for short selling and securities borrowing and lending (SBL) services provided by securities companies.
- Follows Thai SEC August 2025 proposed rules on margin lending and derivatives.
Outline of Proposal
- The proposed revisions include clearly defining short selling transactions for securities companies providing these services.
- Proposed requirements for providing short selling services include know-your-customer procedures for inter-broker clients and more efficient short selling order processes.
- Clients must provide certification that they have borrowed or arranged a source for borrowing securities before placing a sell order under the proposals.
- The proposed revisions eliminate the requirement to prepare recourse agreements for short selling transactions.
- Securities companies must have effective risk management systems and may lend or confirm availability of securities for lending only where they have sufficient securities.
- The proposed revisions aim to prevent the risk of lending, or confirming lending, beyond the amount of securities held by securities companies.
Effectiveness
- The consultation is open until 11 February 2026.
