SEC Reveals Progress on Key Measures to Drive Quality in Thailand's Investment Market

News Summary

• The SEC is advancing comprehensive reforms in Thailand's capital market, including the TISA long-term savings project, reducing the IPO review period to 60-100 days, and facilitating fundraising for the New Economy sector through the BOI to IPO initiative.
• In the realm of digital assets, the SEC has implemented a tokenized fund since April 1, 2026, and is preparing to enforce the Travel Rule in 2027 while gathering feedback on the regulation of stablecoin transactions.
• The statistics on combating investment fraud have shown significant improvement, with 100% of reported accounts blocked within 7 minutes to 48 hours, while the age of pending cases has decreased from 8 years to 3.6 years.

The SEC has outlined the direction for driving the country's investment market under its supervision, focusing on addressing structural issues by enhancing the quality of both demand and supply in the market. Important measures have been provided, aiming for tangible results.

An example of creating quality demand in the capital market is the TISA project, regarded as the "savings infrastructure" of the country. Measures to enhance supply quality, in collaboration with the Stock Exchange, aim to attract New Economy businesses and streamline the IPO review process to support "potential enterprises" in raising funds in Thailand's capital market, responding safely to opportunities in the digital society.

By advancing the digital capital market that adequately protects investors, the SEC is piloting tokenized funds while enhancing regulatory oversight and law enforcement efficiency. This includes processes to prevent and reduce the chances of using capital market and digital asset channels to evade regulations and commit money laundering offenses, through integration with relevant agencies and businesses to manage financial fraud and cybercrime risks.

Ms. Pornnang Busarakul, Secretary-General of the Securities and Exchange Commission (SEC), stated that the global economic situation, geopolitical conflicts, developments and growth in financial technology, as well as extreme climate standards and regulations, are factors affecting "Thailand's investment market" in various aspects.

These factors influence capital inflows, market volatility, cyber risks, and investment fraud, while simultaneously presenting growth opportunities for the New Economy sector and utilizing digital technology to enhance efficiency and expand public access to investment.

The SEC has continuously implemented important measures aimed at building "Resilience" to address structural issues for long-term sustainability, driving the capital market and digital asset market to become a quality "Thailand investment market" that can cope with various factors, with significant progress in each area as follows:

Targeting "Quality Creation" in Thailand's Investment Market

The SEC, in collaboration with the Ministry of Finance, the Thai Capital Market Business Council (FETCO), and the Stock Exchange, is promoting the Personal Investment Savings Account (TISA) project, which serves as a "savings infrastructure" that allows investors to convert savings into long-term investments and diversify investments across various assets conveniently and with appropriate incentives, while also expanding the base of new investors to strengthen the long-term investor base in the country.

At the same time, the SEC has streamlined the process for approving the public offering of newly issued shares to make it more concise (Streamline IPO process), focusing on a disclosure-based approach along with qualification assessment criteria.

The SEC aims to reduce the IPO review period to 60-100 days from an average of 147 days, representing a reduction of 30-60%. For this improvement, the SEC has collaborated with the Stock Exchange and stakeholders such as financial advisors and auditors.

The goal is to enhance fundraising efficiency and attract potential enterprises to raise funds in Thailand's capital market, with appropriate investor protection and oversight, including issues related to conflicts of interest, in line with international standards.

In addition, the SEC has collaborated with the Stock Exchange to push the BOI to IPO project to attract New Economy businesses into the capital market. They have approved the improvement of securities acceptance criteria, the qualifications of New Economy companies, and established a special track to support companies promoted by the BOI and EEC, which are the main agencies attracting investments from New Economy businesses in Thailand.

Development of New Funding Models with Investor Protection

The SEC has promoted products and innovations that meet the needs of new funding models by utilizing technology in product issuance and transactions in the capital market. This not only increases diversity for businesses seeking funding but also provides more options and convenience for investors, along with appropriate protection under the SEC's supervision.

Recently, the SEC has promoted Securities Tokenization to support the conversion of securities into tokens, enhancing transaction efficiency in the digital capital market, such as tokenized funds, with the rules coming into effect on April 1, 2026.

The promotion of these innovations is part of learning and technological development in collaboration with stakeholders to support appropriate regulation when the electronic securities law comes into effect.

The SEC also emphasizes implementing measures to combat financial fraud in the capital market and digital asset market to prevent and reduce risks from using these markets as channels for money laundering, technology crimes, or evading international money transfer regulations.

They have issued various guidelines, such as the Travel Rule, which will come into effect on February 27, 2027, and are considering regulations for stablecoin transactions through digital asset business operators, which is being integrated with other agencies, such as the Anti-Money Laundering Office (AMLO) and the Bank of Thailand (BOT).

Additionally, the SEC has driven alerts against investment scams in various forms and coordinated with relevant government and private agencies to intercept investment scam channels within 7 minutes to 48 hours, successfully blocking 100% of reported accounts.

Furthermore, there will be an expansion of operations by utilizing technology to detect investment scams and extending the Responsible Voices project for Finfluencers.

Currently, investors are becoming more aware and placing greater importance on checking information before investing, as reflected in the SEC's statistics on reported investment scams. In 2026, consultations regarding investment scams increased threefold compared to the same period last year, with the SEC emphasizing its role in preventing scams before they cause harm to the public.

Enhancing Law Enforcement Efficiency Across the Board

The SEC has continuously improved the efficiency of its inspection and law enforcement operations, resulting in more intensive and effective law enforcement.

According to the latest statistics on law enforcement, as of August, the number of cases under investigation has shown a continuous downward trend. The longest case duration has decreased from 8 years to 3.6 years, and the average case duration has reduced from 2.3 years to 1.5 years.

"The SEC is also pushing for amendments to the laws it oversees to modernize them, make them international, and support the sustainable growth of the Thai capital market. Currently, there are five sets of laws under revision, including drafts of the Securities Act, Electronic Securities Act, Trust & Confidence Act, and four drafts aimed at enhancing capital market regulation to improve the efficiency of the fundraising process.

Including the provision for SEC staff to jointly investigate cases, specifically those with high impact on the country's economic system, to enhance efficiency before filing lawsuits, which the Cabinet has already approved in principle," said the Secretary-General of the SEC.

Additionally, the SEC has revised its guidelines to elevate the supervision of listed companies, such as the role of internal auditors for IPO companies, improving the guidelines for significant transactions (MT) and related party transactions (RPT) to enhance investor protection. The SEC has also approved a review of trading regulation measures according to the Stock Exchange's proposals to align with the current market context, reduce barriers to trading for investors, and support liquidity while maintaining fairness in the Thai capital market.

SEC Law Enforcement Statistics

Criminal Proceedings

Prosecution of offenders to investigators (B.E. 2568 and DSI)

|-----------------------------------------------------------------------------------------------------------------------------------|------|-------|------|-------|
| Offense | 2568 || Jan 1 - Sep 10, 2569 ||
| Offense | Cases | Counts | Cases | Counts |
| Unfair trading related to securities/digital assets, price manipulation, spreading false news/messages, insider trading | 8111 | 63193 | 1--- | 21--- |
| Fraud (including accomplices) | 4 | 11 | 3 | 3 |
| Providing false statements or concealing true statements that should be disclosed in material facts / false documents | 4 | 19 | 1 | 1 |
| Operating without authorization | 2 | 11 | 6 | 25 |
| Non-compliance with business operation criteria | 3 | 3 | 10 | 15 |
| Reporting securities holdings of directors and executives | 4 | 5 | 2 | 2 |
| Business domination | -- | -- | 2 | 2 |
| Others, such as disclosing the financial status and performance of the company | 33 | 67 | 5 | 11 |
| Total | 61 | 192 | 30 | 80 |

From January 1 to September 8, 2569, the SEC has enforced the law in criminal cases of unfair practices, fraud, and operating without authorization, prosecuting offenders to investigators (B.E. 2568 and DSI) in a total of 30 cases, with 80 offenders. The offenses include unfair trading related to securities/digital assets, with 1 case of price manipulation involving 21 offenders.

Fraud involved 3 cases with 3 offenders, submission of false documents to the SEC involved 1 case with 1 offender, business domination involved 2 cases with 2 offenders, and operating without authorization involved a total of 6 cases with 25 offenders.

Civil Penalty Measures

1. The Civil Penalty Committee (C.P.C.) has established civil penalty measures against offenders.

|--------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-----|------| | Basis of Offense | 2568 || Jan 1 -- Sep 10, 2569 || | Basis of Offense | Case | Count | Case | Count | | Unfair practices related to securities/digital asset trading, price manipulation, insider trading/disclosure of information in news/false statements | 12101 | 70432 | 6-- | 32-- | | Making false statements or concealing true information that should be disclosed in the material facts | 1 | 2 | -- | -- | | Failure to perform duties with responsibility, caution, and integrity | 1 | 1 | -- | -- | | Total | 25 | 118 | 6 | 32 |

2. Agreement to comply with civil penalty measures as determined by the SEC*

|------------------------|----------|------------------|---------------------------|--------------------------------------------|---------------------------------------| | | Number of Cases | Number of Offenders | Civil Penalty** (Baht) | Compensation equal to benefits received** (Baht) | Compensation for audit expenses (Baht) | | 2568 | 14 | 39 | 131,526,083 | 70,855,574 | 3,032,591 | | Jan 1 -- Aug 31, 2569 | 7 | 25 | 662,697,675 | 519,446,913 | 1,554,040 | | 2560 -- Aug 31, 2569 | 88 | 341 | 2,826,371,549 | 976,817,633 | 15,437,601 |

Note:

• Data on the date of the agreement to comply with civil penalty measures as determined by the SEC

** Civil penalties and compensation for benefits received from violations are revenues that have been remitted to the Ministry of Finance.

3. Judgments in cases filed by the SEC for the civil court to impose civil penalties

|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------| | 2560 -- Aug 31, 2569 | Number | | | Cases have reached final judgment* with the court ruling in favor of the SEC, imposing penalties and civil measures on the defendants at the maximum rate prescribed by law* | 6 cases | -- First instance court 1 case -- Appeal court 5 cases | | Under consideration by the first instance court/ Appeal court | 19 cases | -- Under consideration by the first instance court 10 cases- Under consideration by the appeal court 9 cases | | Total | 25 cases | |

During the period from Jan 1 -- Sep 10, 2569, the SEC has resolved to impose civil penalties on a total of 6 cases involving 32 offenders for the basis of unfair practices related to securities/digital asset trading, including price manipulation.

From January 1 to August 31, 2023, there were 25 offenders who agreed to comply with the civil penalty measures set by the Securities and Exchange Commission (SEC) in 7 cases, resulting in a total civil fine of 663 million baht and restitution of benefits received amounting to 519 million baht.

Since the implementation of civil penalty measures in 2017, a total of 341 offenders have agreed to comply with the civil penalty measures set by the SEC in 88 cases, with civil fines totaling 2.826 billion baht and restitution of benefits received amounting to 977 million baht. The civil fines and restitution from violations have been remitted to the Ministry of Finance by the SEC.

For offenders who do not agree to comply with the civil penalty measures set by the SEC, the SEC has requested the public prosecutor to file a lawsuit against the offenders in civil court to impose the maximum civil penalties as stipulated by law.

As of August 31, 2023, there have been 6 cases where the SEC has filed lawsuits for the court to impose civil penalties, with final judgments rendered (1 case in the first instance court and 5 cases in the appellate court). The court ruled in favor of the SEC, imposing the maximum civil penalties on the defendants as prescribed by law. There are currently 19 cases under consideration in the first instance/appellate court, with 10 cases in the first instance court and 9 cases under appeal.

The operation of the "Investment Fraud Hotline" can be reached at 1207, press 22.

|---------------------------------------------------------------|---------|-------------------|-------------------| | Action | 2023 | Jan. -- Aug. 2023 | Jan. -- Aug. 2024 | | Consultation on investment fraud | 8,287 | 2,817 | 4,631 | | Blocking fraudulent content or channels (accounts) | 3,714 | 2,957 | 411 | | -- Direct blocking reported to social media platform providers| 3,376 | 2,826 | 272 | | -- Blocking reported through government agencies | 338 | 131 | 139 | | Total reports and consultations on investment fraud (instances)| 12,001 | 5,774 | 5,042 |

Note: * Blocking reported through government agencies includes the Ministry of Digital Economy and Society (DE), the National Cyber Security Agency (NCSA), starting from September 2023, and the Cyber Crime Investigation Bureau (CCIB), starting from March 2023.

During the period from January to August 2023, the SEC's "Investment Fraud Hotline" received 5,042 reports of investment fraud and provided consultations through 7 channels, including the SEC website (www.sec.or.th/scamalert), telephone (1207 press 22), email ([email protected]), in-person visits to the SEC office, chat services (Facebook and Live chat), and mail.

There were 411 social media accounts identified as fraudulent, coordinated with social media platform providers and government agencies for blocking. The platform providers successfully blocked 100% of these accounts within 7 minutes to 48 hours, and consultations on investment fraud increased to 4,631 instances, up from 2,817 during the same period in 2022. From January to May 2023, consultations increased threefold compared to the same period last year.

The blocking of fraudulent investment channels on various platforms must be conducted as quickly as possible to prevent other citizens from becoming victims of investment fraud. The process includes verifying information, contacting whistleblowers for additional details, collecting evidence, preparing documents and information for blocking, searching for additional information from reports, and contacting individuals whose names were used in the fraud for fact-checking. This is done with caution to ensure that it is indeed a case of investment fraud and to avoid mistakes in blocking.

Suspension of digital asset accounts of digital asset business operators.

|-------------|--------------------------------------| | | Suspended Accounts (Total as of Month End) | | 31 Dec 68 | 47,692 accounts | | 31 Mar 69 | 55,978 accounts | | 30 Jun 69 | 60,968 accounts | | 31 Jul 69 | 62,516 accounts |