Finance Minister Pichai Chunhavajira has vowed to push for an emergency decree to grant the Securities and Exchange Commission (SEC) increased authority to punish offenders.
In his keynote speech on "Developing Thailand's Capital Market to Drive Economic Growth" at an event hosted by the SEC on Thursday, Mr Pichai said the legal process for handling offenders and enforcing regulations for stock market investments must be expedited to build trust and confidence among investors in the Stock Exchange of Thailand (SET).
He said he plans to advocate for an emergency decree to expand the SEC's enforcement authority, particularly for high-impact violations, allowing for immediate action.
Mr Pichai said the Finance Ministry would strengthen the SEC's authority in three areas. First, granting the regulator the authority to submit case reports directly to prosecutors, bypassing police investigations to accelerate legal proceedings, especially in high-impact cases.
Second, tightening oversight of professionals in the capital market, including auditors, financial advisors, bond distributors, and bondholder representatives to ensure better investor protection.
Third, increasing penalties for end beneficiaries of illegal short selling, extending liability beyond securities firms that execute trades.
He said delays in enforcement of the Securities Act, caused by multi-agency investigations and complex approval processes, have led to significant investor losses, particularly in high-impact cases. Strengthening the SEC's authority to prepare and submit case reports directly would accelerate legal proceedings, enhance fairness, and provide stronger investor protection, said Mr Pichai.
"The ministry wants to fast track the issuance of the emergency decree to ensure swift enforcement," he said. "Once approved by the cabinet and reviewed by the Council of State, the decree will take immediate effect."
Pornanong Budsaratragoon, secretary-general of the SEC, said the civil penalty process against offenders has accelerated significantly. With the cooperation of multiple agencies, the process can now be reduced by up to 30%, she said. All fines collected from these penalties are remitted to the Finance Ministry.
However, Ms Pornanong said the investors' compensation fund is not yet included in this emergency decree.
According to Mr Pichai, the government wants to attract foreign companies to list on the SET and to encourage Thai companies listed abroad to return and list in the domestic market.
He also addressed the topic of digital assets, noting Thailand was one of the first countries to enact digital asset laws. However, the country has fallen behind in terms of further development, particularly in integrating innovation.
Mr Pichai said the government wants to enhance the efficiency of these laws, ensuring their ultimate goal is investor protection and fostering responsible digital asset entrepreneurs with a strong compliance mindset.
He said the government plans to support asset-backed tokens and digital securitisation by implementing a sandbox framework to facilitate learning and regulatory development.
"Government bonds could potentially be classified as a type of stablecoin, and digital assets will eventually become an alternative investment option for retail investors," said Mr Pichai.
Regarding Thailand's ambition to become a financial hub in the region, he said for the first phase, the ministry wants to encourage foreign financial institutions to relocate their headquarters to Thailand.
Initially these institutions would be permitted to operate exclusively for non-residents, meaning they would not be subject to Thailand's domestic financial regulations, allowing for immediate implementation.
In later phases, the government may consider expanding their operations to include domestic markets, said Mr Pichai.
He also discussed efforts to establish Thailand as a regional logistics hub, noting the government plans to develop an additional 800 kilometres of double-track railway.
Next week, the government is expected to push forward Phase 2 of the high-speed rail project, connecting the railway in Laos built by China. This connection will enable seamless land transport between the Andaman Sea and the Pacific Ocean, positioning Thailand as a trading hub and reinforcing its role as a financial hub, said Mr Pichai.
