Thailand’s stock exchange to overhaul listing rules

In response to an accounting scandal, debt defaults, and erratic share behaviour that have disturbed investors, Thailand is planning to tighten its listing rules. The Stock Exchange of Thailand (SET) board has endorsed a substantial overhaul of listing regulations, including increasing the free float ratio and raising the bar for profitability and shareholder’s equity. The amendments, pending approval from the market regulator, will apply to both the SET and the Market for Alternative Investment board for smaller companies. The upheaval in the Thai market, currently the poorest performer in Asia, has prompted calls for immediate action to prevent future incidents and restore investor confidence. The new rules could be in place by year-end, and are part of SET’s three-year strategic plan.