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Thailand Stock Market

 

 

Thailand Stock Market

Thailand has been trading with neighboring Asian countries since the dawn of civilization.

So in essence, it has been engaged in the trading business since time immemorial, although not formal.

It was only in mid 20th century did the Thailand government exerted formal efforts to uphold the country’s economy through the establishment of an organized securities market.

Thailand stock market began as a limited partnership established by a group of private businessmen in July 1962. The private group’s effort was an answer to the call of the National Economic and Social Development Plan to promote national economic growth and uplift Thailand’s standard of living.

 

 The privately owned organization later came to be known as the Bangkok Stock Exchange Co., Ltd., or BSE for short. But in spite of its good intentions, BSE was not very successful.

 

Stock Market in Thailand

Annual turnover in the stock exchange was minimal and fell even more towards BSE’s end in mid 1970s. The organization’s failure was blamed to inexperience and limited knowledge about the equity market.

The Bangkok Stock Exchange was replaced by the government’s first official securities market—the Securities Exchange of Thailand, otherwise known as SET. The Stock Exchange of Thailand was formally enacted in May 1974, but its inception began as early as 1969 as part of the Second National Economic Development Plan (1967-1971).

 

Government officials had been contemplating on establishing an organized market that has proper facilities, well thought-out policies and orderly processes for securities trading. And the government put this thought into action when it amended the “Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare” in 1972. The amendment gave the government further control and added regulatory power over securities and finance companies’ operation.

 

And then the establishment of the much-awaited Stock Exchange of Thailand was completed. More amendments followed after this—changes to the Revenue Code, which allowed savings investment in the capital market. Then finally, the SET began its official trading on the 30th of April in 1975.

 

The stock exchange continued to evolve over the years and even changed its name to Stock Exchange of Thailand on January 1991. But it still retained its acronym, SET.

Through the years, the stock market has undeniably played a significant role in the improvement of Thailand’s financial system.

Thailand Stock Market

 

It has provided a more efficient way of monitoring the country’s economic development. Through the stock market, Thailand was able to create more opportunities for both local and foreign investors; thus, creating more job opportunities for its citizen as well.

 
 

  

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