SET to provide info on pledged shares, may revise trading regulations

The Stock Exchange of Thailand (SET) plans to disclose information about pledged shares recorded in the Thailand Securities Depository (TSD) system. 

The move aims to provide investors with better information to support their investment decisions. 

Additionally, SET is reviewing its trading regulations and will propose revised measures to the board by late January, with new guidelines expected in February.

SET spokesperson Rongrak Phanapavudhikul said on Wednesday (January 8) that over the past year, more than 10 trading measures were introduced to boost investor confidence and ensure robust market regulation. 

Currently, the SET is working to consolidate pledged share information through the TSD system for public disclosure, similar to the reporting of securities pledged as collateral for margin loans, which is currently released monthly.

The disclosure of pledged shares has been a recurring topic of discussion between SET and the Securities and Exchange Commission (SEC). While it may not completely resolve the issue, it provides investors with essential information for decision-making. The SET is also encouraging listed companies to focus more on their core businesses, as pledging of shares can raise questions about management priorities.

"The SET and the SEC are collaborating to strengthen oversight and implement additional measures. Meanwhile, the SET will continue monitoring listed companies and sharing relevant information to assist investors in making informed decisions," Rongrak added.

Regarding the sharp decline in RS Group shares, the SET has not issued yet an inquiry letter. It was revealed that 222 million shares, valued at 1 billion baht, were pledged as collateral in margin accounts. 

As of 10.35am on Thursday (January 9), shares of RS dropped to the floor for the third consecutive day, plunging 30%, or 0.78 baht, to 1.82 baht per share. This decline has reduced the company’s market capitalization by 6.110 billion baht.

Dithanop Watthanavekin, senior analyst at Krungsri Securities, said that RS had previously informed the market that the sharp decline in its share price was due to market mechanisms and external factors. However, further monitoring of RS's situation is necessary to determine the direction it will take. On Thursday, there were over 200 million shares placed at the floor price, indicating a strong possibility of forced selling by certain shareholders. This has led to significant sell orders at the floor price, further driving the share price downward.

"RS attempted a restructuring at the end of last year, but the efforts were unsuccessful. There is also concern about forced selling of shares pledged as collateral by certain individuals. According to the latest data disclosed by the Stock Exchange of Thailand in November 2024, many shareholders had pledged their shares as collateral in margin accounts, which could have exacerbated the sell-off," Dithanop added.