InfoQuest (March 25) -- The Security and Exchange Commission of Thailand (SEC) opened a hearing on suggestions to improve conflicts of interest management policies in equity offering and debt issuance, in order to promote transparency, protect investors and improve efficiency.
Eliminating conflicts of interest is one of the important policies for the SEC, especially in the process of security issuance. The major intermediaries involved are financial consultants, underwriters and bondholder representatives. Between the intermediary and the issuer, certain relation which can affect the function of the intermediary might exist, for example, cross shareholding, a common director and underwriter or the financial consultant being the creditor of the issuer.
Therefore, the SEC hopes to improve the conflicts of interest management policies to promote efficiency, and takes precautions and adopts information disclosure to provide references to investors' decision-making. The guideline was drawn from the regulation and reform plan. The SEC invited all stakeholders to review the relevant policies and the consultants also put forward suggestions based on international criteria.
Based on this, the SEC opened a hearing on suggestions to improve the above polices, including rules concerning the security issuance to cornerstone investors (CIs) and rules prohibiting underwriters from becoming the CIs of the security they underwrite.
The documents about the suggestions are publicized on the SEC's website www.sec.or.th/hearing. Stakeholders can air opinions on the website or fax to 0-2263-6502 or email to corporat@sec.or.th. The deadline is April 6, 2019.
Source: InfoQuest, by Sasithorn Simaporn, translated by Xinhua Silk Road
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