Thailand's cabinet on Tuesday approved measures to support the stock market, the finance minister said.
The measures include tax incentives for investments in mutual funds focused on sustainability, Pichai Chunhavajira said.
The announcement comes as the Stock Exchange of Thailand index fell to its lowest level since April 2020 in Tuesday's morning trading session. Foreign investors have sold 26 billion baht worth of Thai equities so far this year.
In addition, a law that would increase the powers of the Securities and Exchange Commission (SEC) would be proposed to cabinet in two weeks, which should help boost investor confidence, Mr Pichai said.
The SEC will have more investigative powers and the ability to freeze assets quicker, he added.