Securities firms told to boost market reporting

Written By Unknown on Sunday, 5 May 2013 | 09:54






The Securities and Exchange Commission (SEC) has encouraged securities companies to prepare reports for companies issuing the most actively traded stock to ensure that investors have sufficient information with which to make their decisions.





The Association of Thai Securities Companies (ASCO) will issue a regulation requiring such reports effective June 1.



SEC secretary-general Vorapol Socatiyanurak said the commission, in collaboration ASCO, urged all securities houses to issue reports on the companies issuing the 20 most actively traded securities - and the 10 most actively traded by individual customers - each week.



The company reports should contain useful data for investment decision-making, such as key financial ratios, and offer comparisons with other companies in the same industry. The reports will not, however, provide any price recommendations. ASCO has been in talks with its members to establish the reports' format before submitting it to the SEC for approval.



Recent trading statistics indicate that investment by local retail investors is concentrated in the most actively traded securities with high price-to-earnings (P/E) ratios, as well as those subject to the cash balance rule. Most of these securities are not yet covered by securities companies' research reports.



Year-to-date balance



In addition, year-to-date balances of securities-trading accounts opened by new investors are up significantly. As such, preparation of the company reports will provide retail investors with more information for use in their decision-making. The securities companies will be required to prepare and distribute a company report for each security for at least three months.



The reports must be updated to contain information likely to impact the security's performance or price.



For securities that are the subject of a company report for four consecutive weeks, the securities company must promptly prepare a full research report.







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Source: http://www.news.thethailandlinks.com/2013/05/05/securities-firms-told-to-boost-market-reporting/

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