SEC PUBLIC COMMENTS SOUGHT ON CHANGES TO DW RULES
The Securities and Exchange Commission of Thailand (SEC) is seeking public comments on a draft amendment to the rules governing issuance and offering of derivative warrants (DW) to require additional and continuing disclosure related to the DW prices for the benefit of investors' decisionmaking, according to a press release yesterday.
While better understanding of the products and more convenient comparison with other financial instruments.
Also, a previous hearing on the principles for the disclosure amendment conducted in last July showed that most participating stakeholders agreed with the proposal for revising the rules in this matter.
According to the proposed amendment, an DWs have become a more popular choice of investment, an SEC research has shown that sufficient disclosure of useful information would lead to investors' DW issuer would be required to disclose more information related to the price of the DW to be offered. This includes: additional disclosure on the historical volatility of the underlying shares in the registration statement and prospectus; continuing disclosure of the implied volatility in comparison to the historical volatility on the website of the DW issuer; disclosure of a warning statement regarding the gearing ratio, a price risk measurement tool, on the cover of the registration statement and prospectus. In addition, the draft amendment would allow foreign shares and foreign index to be an additional underlying for DW products to give more investment alternatives for investors.
