Thailand – TCH Draft Regulations on Short Selling

Thailand – TCH Draft Regulations on Short Selling

On 6 October 2023, Thai TCH drafted short selling and trading securities rules.

  • Thai TCH drafted regulations on short selling on the stock exchange and trading securities with cash to increase investment options and strengthen supervision.
  • Follows Thai SET March 2020, issued adjusted short selling regulations.

Increasing Investor Confidence

  • Common stocks that are the reference products in futures contracts are exempt from the rules regarding the short selling price or those stocks can be sold at a lower price.
  • This is to support the performance of the market maker, which will result in investors being able to buy and sell products on TFEX at a price that is deemed appropriate.

Securities Trading

  • The proposed rules set the criteria more clearly in terms of considering the quality of customers and collateral in determining credit limits and trading power of customers.
  • Proposed rules to allow member companies to delay sales costs and member companies are advised to have good risk management and bring investor confidence.

Effectiveness

  • Stakeholders can submit comments via the online form until 20 October 2023.