ID :
143413
Fri, 09/24/2010 - 09:47
Auther :
Shortlink :
http://m.oananews.org//node/143413
The shortlink copeid
SEC ready to oversee impacts on SET of possible capital inflow control
BANGKOK, Sept 24 – The Securities Exchange Commission (SEC) is ready to oversee the possible impacts on trading in the Stock Exchange of Thailand (SET) if the Bank of Thailand (BoT) imposes measures to control foreign capital inflows, according to SEC Senior Assistant Secretary-General Pravej Ongartsittigul.
He attributed the foreign capital influx into the stock market and the secondary market to investor confidence in the growth potential of the Thai economy in particular and Asian economies in general.
Mr Pravej said SEC had attempted to restore foreign confidence in investment in Thailand in the short and long terms, but whether the capital flowed into the country for speculative purposes or not is a duty of the central bank to oversee.
Regarding the central bank’s possible move to impose measures to control the capital inflow, he said the SEC is monitoring what measures the bank will take and how they could affect the stock market and the secondary market.
He affirmed that the SEC had sufficient systems to respond if investors dumped shares in panic from the capital control measures, as seen in late 2006 when the central bank imposed the 30 per cent reserve requirement.
In particular, the SEC is confident the clearing system will not develop any problems and that securities companies are in a strong position to handle any stock plunge.
“The SEC is aware that the central bank is concerned about the baht surge, but it does not know what measures the bank will take to control the capital inflow. It has to monitor [what is happening] and prepare measures if the bank does impose the measures,” he said. (MCOT online news)
He attributed the foreign capital influx into the stock market and the secondary market to investor confidence in the growth potential of the Thai economy in particular and Asian economies in general.
Mr Pravej said SEC had attempted to restore foreign confidence in investment in Thailand in the short and long terms, but whether the capital flowed into the country for speculative purposes or not is a duty of the central bank to oversee.
Regarding the central bank’s possible move to impose measures to control the capital inflow, he said the SEC is monitoring what measures the bank will take and how they could affect the stock market and the secondary market.
He affirmed that the SEC had sufficient systems to respond if investors dumped shares in panic from the capital control measures, as seen in late 2006 when the central bank imposed the 30 per cent reserve requirement.
In particular, the SEC is confident the clearing system will not develop any problems and that securities companies are in a strong position to handle any stock plunge.
“The SEC is aware that the central bank is concerned about the baht surge, but it does not know what measures the bank will take to control the capital inflow. It has to monitor [what is happening] and prepare measures if the bank does impose the measures,” he said. (MCOT online news)
