Thailand proposes revisions to short selling and SBL services
13 January 2026 Thailand
Image: Kalyakan/stock.adobe.com
The Íø±¬³Ô¹Ï and Exchange Commission of Thailand (SEC) has proposed revisions to regulations governing short selling, as well as securities borrowing and lending services provided by securities firms.
Looking to improve the appropriateness and efficiency of these services, the SEC also aims to enhance regulatory oversight in line with the current capital market conditions.
The SEC has solicited public feedback on the proposed revisions and has consulted with the business sector and relevant agencies.
Incorporating feedback from stakeholders, the SEC says that most agree with the overall principles, as well as suggestions to review and improve the regulations further.
The goal is to ensure they are appropriate, consistent with the practices of securities firms, and reduce unnecessary burdens on businesses.
The key aspects of the revisions are three fold: to clearly define the meaning of a short selling transaction; provide short selling services according to customer orders — such as getting to know inter-broker customers, efficient short selling order processing; and require customers to certify that securities are being borrowed or provided before placing a sell order, including the cancellation of the recourse agreement requirement.
The SEC has clarified the SBL service guidelines, emphasising that securities firms must have an effective risk management system and can only lend or confirm the availability of securities for lending if they have sufficient securities available, in order to prevent the risk of lending or confirming lending beyond the amount of securities held.
Looking to improve the appropriateness and efficiency of these services, the SEC also aims to enhance regulatory oversight in line with the current capital market conditions.
The SEC has solicited public feedback on the proposed revisions and has consulted with the business sector and relevant agencies.
Incorporating feedback from stakeholders, the SEC says that most agree with the overall principles, as well as suggestions to review and improve the regulations further.
The goal is to ensure they are appropriate, consistent with the practices of securities firms, and reduce unnecessary burdens on businesses.
The key aspects of the revisions are three fold: to clearly define the meaning of a short selling transaction; provide short selling services according to customer orders — such as getting to know inter-broker customers, efficient short selling order processing; and require customers to certify that securities are being borrowed or provided before placing a sell order, including the cancellation of the recourse agreement requirement.
The SEC has clarified the SBL service guidelines, emphasising that securities firms must have an effective risk management system and can only lend or confirm the availability of securities for lending if they have sufficient securities available, in order to prevent the risk of lending or confirming lending beyond the amount of securities held.
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