The Securities and Exchange Commission (SEC) approved the fundraising criteria for small and medium-sized enterprises (SMEs) and startups in the primary and secondary markets, with the aim of providing better access to financing in the capital market .
The criteria are expected to come into effect this year, said Ruenvadee Suwanmongkol, secretary general of the SEC.
However, investments in SMEs and startups are limited to investors with accredited skills and experience investing in these types of companies, such as institutional investors, venture capital firms, corporate investment units, SMEs and start-ups.
Retail investors are not allowed to invest in SMEs and startups due to the high level of risk.
Ms Ruenvadee said the SEC had reached an agreement with the Thailand Stock Exchange (SET) on the criteria for fundraising of SMEs and startups in the primary market and listing in the secondary market, as well as the establishment of a secondary market for SMEs and startups, known as the SME Board.
According to the criteria, SMEs and startups that plan to raise funds on the primary market or to be listed on the secondary market must have the status of public company with a legal mechanism for the protection of minor shareholders, in accordance with the model of broader funding.
The criteria for SMEs and startups in the primary and secondary market will be more lenient to help them access capital market funds. Companies must submit filing documents and investment disclosures, but are not required to have a financial advisor or pay fees.
To be registered with the SME Council, companies must submit semi-annual and annual financial statements to an auditor by an audit firm approved by the SEC.
Directors and senior executives of companies are required to fulfill their fiduciary duties as directors and officers, while the distribution of shares should be done through an intermediary company which will be responsible for the knowledge process. client and recommend appropriate investments for businesses.