Fund-raising rules set for SMEs, startups in planned bourse
The Securities and Exchange Commission (SEC) and the SME Startup PE VC panel have agreed at a meeting on the preliminary rules for SMEs and startups to raise capital in the planned stock exchange.
Guidelines on the establishment of the bourse for SMEs and startups only were also discussed.
Those eligible to list must be of the status of company limited or public company limited with good governance records.
They will have to disclose information according to SEC rules.
Eligible investors in these companies must come under the categories of institutional investor, Private Equity (PE), Venture Capital (VC) or angle investor.
Retail investors can also participate, but they have to purchase shares via a brokerage agency.
The SEC will allow the establishment of funds to invest in the shares of these SMEs and startups. These funds must be managed by fund managers with expertise in the investment in SMEs and startups.
Secretary-general Ruenvadee Suwanmongkol said the SEC expected to finalise the rules in the first quarter of next year.