Companies looking to re-enter the market face tougher criteria. For SET-listed firms, shareholders’ equity must jump from 300 million to 800 million baht, while net profit requirements soar from 30 million to 75 million baht. Regarding the Market for Alternative Investment (“MAI”), the thresholds have doubled. These higher benchmarks are not just numbers—they send a clear message: only financially solid players get back in the game.
This shift is more than just economic; it is legal. Directors of struggling companies have added pressure to demonstrate sound financial management, or they could risk legal trouble for failing their fiduciary duties. It is a wake-up call for better governance, ensuring that companies do not just scrape by but prove their stability.
Protecting Investors with Smarter Warnings
The SET is also stepping up protections for investors. Its caution sign framework, previously limited to listed companies, extends to trusts, property funds, and infrastructure funds. These new warning labels—like “CB” for business risks or “CS” for financial concerns—act as a spotlight, showing investors where to tread carefully.
Funds flagged with these caution signs will be traded on cash-only terms, limiting speculative risks. Public updates within 15 days and quarterly progress reports will keep investors informed and empowered to make smarter decisions.
These changes do not just tighten supervision—they balance legal enforcement with market growth. While higher standards push companies and funds to perform better, they also raise questions about the fate of those who fall short. Bankruptcy laws and corporate rehabilitation processes will play a crucial role in determining whether struggling entities can recover or face liquidation.
With these updates, Thailand is signaling its ambition to align with international standards. It is a step toward positioning its capital market alongside global leaders like Singapore and Hong Kong. But it is not just about competing; it is about building trust in a system where transparency and accountability drive long-term stability.