The Stock Exchange of Thailand (SET) proposed a rise in the stock market capitalisation requirement for securities eligible for short selling, along with a threefold increase in fines for rule violations. This move forms part of the SET’s strategy to enhance market supervision and bolster investor confidence.
These changes, which are subject to a public hearing, propose to raise the market capitalisation requirement from the current 5 billion baht to 7.5 billion. The new measures also include the introduction of a stock liquidity rule, requiring businesses to have a monthly trading volume exceeding 2% of monthly turnover in those securities, reported Bangkok Post.
The SET statement further revealed plans to instate additional criteria to mitigate the impacts of short selling. For instance, if a stock’s price falls by over 10% from the previous day’s…
