Thailand tightens market oversight to restore investor confidence

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Thailand plans tougher securities

Highlights

Thailand approved changes to four market laws.
SEC officials could work directly with police.
Fraud probes currently can take more than two years.

According to Bloomberg, the cabinet approved amendments to four laws covering financial markets, capital markets, and digital assets. The proposals would allow SEC officials to work alongside police on major offenses, addressing a process that can currently stretch beyond two years because criminal cases must be referred to law enforcement agencies.

SEC seeks faster enforcement

The reforms build on an emergency decree introduced in March 2025 that expanded the SEC's authority to intervene in suspicious corporate transactions and investigate serious misconduct.

Under the current system, cases involving insider trading, stock manipulation, and corporate fraud still move through the police. Limited specialist resources and financial-market expertise can slow those investigations considerably.

The proposed framework would allow regulators and police to work more closely from the outset, potentially reducing delays and improving the handling of complex securities cases.

The amendments would also strengthen oversight of auditors and financial advisers. Thai regulators increasingly view these professionals as an important line of defense against accounting manipulation, misleading disclosures, and other forms of corporate misconduct.

The draft changes are expected to be submitted to parliament and could take effect in 2027.

Corporate scandals drive the reform push

The tougher approach follows a series of high-profile corporate failures that damaged investor confidence.

Cable manufacturer Stark Corp. defaulted on nearly 40 billion baht, or about $1.22 billion, of liabilities in 2023 after accounting irregularities emerged. Its shares subsequently lost almost all their value, and several former executives were charged with wrongdoing.

Energy Absolute also became the focus of regulatory action in 2024, when the SEC made fraud and corruption allegations against its founder and a director. The case triggered a steep decline in the company's shares and was followed by delays in bond payments.

These episodes exposed weaknesses in how misconduct is detected, investigated, and prosecuted in Thailand's capital markets.

Restoring confidence in Thai markets

The importance of the reforms goes beyond faster investigations. Thailand is trying to strengthen trust in its markets by showing that serious misconduct can be identified and punished more quickly.

That matters for both domestic and international investors. Long investigations can leave shareholders exposed to uncertainty for years, while weak gatekeeping by auditors or advisers can allow problems to grow before regulators intervene.

If parliament approves the amendments, the SEC would gain a more active enforcement role while auditors and advisers would face closer supervision. The effectiveness of the overhaul will ultimately depend on whether the new powers lead to faster cases and more consistent enforcement.

Earlier, we reported that Thailand to tighten stablecoin transaction controls over fraud concerns.

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