Monday August 12 2019

News Source: Global Exchanges

Focus: Listing Rules

Type: General

Country: Thailand


The Securities and Exchange Commission of Thailand (SEC) proposed amendments to the rule governing maintenance of liquidity for mutual fund with a focus on fixed income investment with an aim to ensure mismatches between liquidity of underlying assets and fund’s redemption policy are limited and that guidance on liquidity remains relevant, up-to-date, and in line with international standard.

The proposed amendments include:

  • Revision of the current list of instruments defined as tier 1 and tier 2 liquid assets and addition of new instruments for local investment.
  • Prescription of guideline in assessing liquidity of investment in foreign assets.
  • Clarification of the scope of mixed fund that must comply with this rule to include mixed fund with a specified investment proportion in fixed income of not less than % exposure or in which the fund benchmark contains fixed income component of not less than 60%; exclusion from the scope of application for ultra-high net worth accredited investor fund; and extension of the scope of application for cash reserve requirements for mutual fund that offers daily redemption and payment of redemption within the next business day.
  • Revision of relevant reporting requirement.

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