The House of Representatives has unanimously accepted in principle a government-sponsored bill to amend the Securities and Exchange Act, paving the way for the issuance and trading of securities in electronic form while strengthening regulatory oversight of electronic securities transactions.The bill was approved on Wednesday by all 455 lawmakers present during a parliamentary session chaired by First Deputy House Speaker Mallika Jirapunvanit. A 25-member committee was later appointed to scrutinise the proposed legislation.
The amendment seeks to modernise the capital market laws by allowing certain securities to be issued electronically and by introducing penalties for violations of regulations governing electronic securities.
During the debate, Bhumjaithai Party MP for Phitsanulok Chuti Krairiksh welcomed the bill but warned Thailand still lags behind many countries in developing its capital market framework.
He said modernisation must go hand in hand with stronger corporate governance and more effective measures against market misconduct.
Mr Chuti also said the capital market facilitates fundraising worth about 6 trillion baht, exceeding the government's annual budget, while the value of securities regulated by the Securities and Exchange Commission (SEC) is even larger than the country's gross domestic product.
