No naked short-selling of Thai stocks: PM advisor
Kittirat Na-Ranong, the Prime Minister's advisor, has insisted that there is no “naked short-selling” in the Thai stock market and stressed that proactive measures to control individual investors are in place.
He was speaking after a meeting between representatives of the Finance Ministry, the Stock Exchange of Thailand, and the Securities and Exchange Commission at the Government House. He acknowledged concerns about the market’s vulnerability, attributed in part to Thailand's initially high market base and various factors like Thai and foreign investors, business performance, economic expansion, and short selling transactions.
Kittirat expressed confidence in the government's economic growth projections and also touched on the upcoming release of clear economic figures expected today (November 14) at 5pm, which will address household debt concerns. Regarding “naked short-selling”, he noted that the Securities Exchange Commission (SEC) is strictly monitoring any signs of this practice, which is considered illegal. Pointing to the complexity of today's investment world, he confirmed that there is no naked short-selling, urging investors to trust this assurance.
Naked short-selling refers to the practice of selling shares that an investor does not own and has not borrowed. This practice can be highly risky and lead to excessive stock market manipulation and volatility through speculation.
Speaking of the Finance Ministry’s plan to encourage funds for institutional and public investors, focusing on environmentally friendly ESG funds, Kittirat suggested these funds would attract significant interest. He clarified that the fund’s size would be discussed at a later date, emphasising that its purpose is not to manipulate falling stocks but to increase long-term investments in ESG group stocks.
Responding to questions about a sharp stock decline, Kittirat admitted a significant drop, but would not comment on whether it was felt to be excessive. He added that addressing household debt should boost market confidence.
When pressed on the absence of naked short-selling, Kittirat said he was confident this was the case and again stressed that the issue was not being ignored. The SEC adheres to international standards and intends to strengthen monitoring, he said. While complying with legal standards is straightforward, catching determined investors is SEC’s responsibility, he noted, adding that he had complete confidence in the SEC’s audit standards.
