The Stock Exchange of Thailand recognizes the crucial role investor protection plays in enhancing investor confidence and contributing to market growth. Such protection is best understood as a combination of different, but closely integrated measures - including, but not limited to, market regulation & enforcement, trading and settlement system reliability, information disclosure and equal accessibility. Consequently, SET has establishedthe Securities Investor Protection Fund or SIPFin cooperation with some of its member firms who volunteered to join the fund. Its purpose is to create confidence among investors who trade securities on the Exchange throughthe Fund's member brokers. Investors who are clients of SIPF members can receive their assets back or compensation for the price of assets from this fund in certain circumstances as defined in the regulations.Market RegulationMarket players, including member companies, stockbrokers, custodians, and listed companies, are regulated and must follow strict rules. Both the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) play an important role in regulatory enforcement; however, investors are advised to take the first step in investor protection by ensuring that they deal only with securities companies licensed by the Ministry of Finance upon a recommendation of the SEC. Investors are also encouraged to report any suspected misconduct or to file a complaint formally to the SET, the SEC or the Economic Crime Division of the Royal Thai Police.Systems ReliabilityThe SET trading system has been fully-computerized since 1991, expanding trading capacity as well as improving efficiency and transparency. The trading system, the ARMS, has the capacity to handle 600,000 orders daily.Clearing and Settlement ProcessTo ensure investor confidence during the whole trading cycle, the reliability of the clearing and settlement process is also of great importance. Clearing and settlement is handled by The Thailand Securities Depository Company Ltd. (TSD), which also handles securities deposits and is Thailand's main share registrar. The SET clearing and settlement cycle of T + 3 is on par with global standards. The TSD has also been addressing risk management to minimize settlement risk for all members. The TSD will: Implement Delivery-Versus-Payment (DVP) to be aligned with international standards as well as reduce the risks involved for investors . Move towards Real Time Depository Registration (RTDR) to enable investors and listed companies to access shareholder information instantly, enhancing trading efficiency and risk management, as well as reducing expenses for listed companies. Move to a 100% scripless system to enhance efficiency with risk management and settlement as well as reduce expenses with regard to share certificate issuance. The SET will coordinate closely with relevant government parties in this regard. Facilitate Straight Through Processing (STP) to enable a shift to T+2 settlement, and integrate relevant information to institutional investors and custodian banks. STP will support the reduction of expenses as well as facilitate the investment process for foreign institutional investors. Employ a clearing fund to provide security against damages caused by any settlement default. This fund has been established by the TSD already. Both the Stock Exchange of Thailand and TSD fund members contribute to the fund.Market supervisionThe market surveillance functions at the Stock Exchange of Thailand are enhanced by a computerized electronic monitoring system. Comprised of three main systems for the alert, detection and documentation functions, the ATOMS system was introduced in 1995 to monitor, analyze and facilitate the investigation of suspicious activities. Its effectiveness and reliability continue to play a key role in ensuring proper surveillance, exposing trading malpractice, supporting Exchange investigations and effective enforcement in the process. You can see more details inMarket Supervisionsection.Information DisclosureIn line with the global trends of capital markets with regard to disclosure-based screening for listing securities on the Exchange, a key goal of the Stock Exchange of Thailand is to develop a "well-informed" market by ensuring full disclosure of important information deemed relevant to investor's decision-making. This will ensure that investors are well-placed to assess, and protect their own interests in the market. Investors are also invited to conduct their own market research by accessing the SET market data section.http://www.set.or.th/en/regulations/protection/protection_p1.html

Securities Investor Protection Fund (SIPF)SIPF originated from cooperation between The Stock Exchange of Thailand (SET) and some of its member firms who volunteered to join the fund. Its purpose is to create confidence among investors who trade securities on the Exchange. Investors who are clients of SIPF members can receive their assets back or be compensated from this fund under the conditions outlined below.Investors ProtectionSIPF provides protection to investors who fail to receive returns on their assets or compensation for the price of assets from SIPF members if :1. any member broker of SIPF is adjudicated bankrupt2. any member broker of SIPF fails to comply with an arbitral award requiring them to return the assets or compensate for the price of assets to investors.This protection does not include losses incurred from price decreases due to the securities trading.

Compensating to InvestorsThe investors shall be entitled to compensation for assets or compensation for the price of assets from the Fund not exceeding the actual damage incurred to them and each investors will get no more Baht 1 million per one SIPF's member broker.

How to Request this ProtectionInvestors are automatically protected when they open a trading account as long as their broker remains a SIPF member. Moreover, investors need not apply for this protection or pay anything.

Requesting this ProtectionWhen a fund member fails to return an investors assets, the investor has the right to request protection from the Fund through Member Services Department at SET.

Related Regulation1.Regulation - Protection for Securities Investors(Update Nov 11, 2013)2.Regulation - Membership of the Securities Investor Protection Fund(Update Nov 11, 2013)3.Regulation - Use of Logo of the Securities Investor Protection FundA List of Fund MembersSIPF protects only those investors who are fund members customers, so investors should examinea list of fund membersor see if their brokers offices or brochures have the SIPF logo.

Why invest in Thailand?

Waltr bau caseThailand'songoingcourt caseagainst Germany'sWalter Bau AGwill have apositiveimpactoninvestorconfidenceand give the governmentsecond thoughtsabout changingregulationsthat affectforeign investors'rightsin the kingdom, says aleading lawfirm.

Instead of focusing on thenegativesentimentthe case created,partnersatBaker & McKenziesee thelegaldisputebetween the Thai government and thebankruptGermanconstruction firmas setting a standard in terms offoreign investmentprotection.

The casestems froma Thai governmentcontractwith the German builder more than 20 years ago to build and operate atollwayto Don Mueang airport.

Courts ruled that the Thai governmentbreached several contractual obligationsand must pay US$42 million it owes the company.

The case became a majordiplomaticincidentearlier this year when theliquidatorsof Walter Bauseizeda passenger jet belonging to His Royal Highness Crown Prince Maha Vajiralongkorn in Germany in order toenforcetheirclaim. The jet wassubsequently releasedwhen it wasestablishedthatthe Crown Prince and notthe Thai government was the plane's owner.

"The Walter Bau case has brought aboutpositiveresultsbecause the firm won the case against the Thai government," said Wynn Pakdeejit, a partner in thedisputeresolutiongroup at Baker & McKenzie.

Anything that affects investment protection, if the government breaches, it has to pay thecompensation.

The Walter Bau case was applied underbilateral investment treatiesbetween Thailand and Germany.

Such agreements between two countries cover promotion and protection of investments in each other'sterritoryby companies based in either country.

Thailand has signed such agreements with 40 countries, including Germany, China, England, Canada, South Korea, Laos, Cambodia, India, the Philippines and Indonesia. Of the total, 35 have come into effect, according to the United Nations Conference on Trade and Developmentdataas of June 1 this year.

The treatiesensurethat foreign investments in Thailand are afforded a degree of protection and so areThai investments in other hostcountries.

A number ofincidentsin recent yearsraised concernsaboutinvestment protection in Thailand, such as thepoliticalproteststhat led totemporaryclosuresof international airports and theRatchaprasong intersection.

Thus far, no cases have beeninitiatedby foreign investors under the treaties, said Mr Wynn.

Even so, some international investors have approached Baker forconsultingrelated to investment protection. Pisut Attakamol, also a Baker partner, said the Walter Bau case could be a lesson for the Thai government about majorpolicybacktracking.

"The case indicates that before asignificantchange of policy, the government should have a second thought," Mr Pisut said.

Thailand has seen some recent policy changes by the government concerning foreign investments, led bypolicies to promoteethanol production and eco-cars.

TheMap Ta Phutimpasse, whichpromptedacourtrulingtohaltoperationsof 76 industrial projects in Rayongon environmental grounds, is amajorconcernof foreign investors here.

"Laws must havestabilityand theneffectiveenforcement, both of which have seen animprovementin Thailand," Mr Wynn said. "Butthere's room for improvementin both stability and enforcement.

At the same time, Thai companies should beawareof protection under bilateral investment treaties before investing abroad.

Large Thaicorporationshave been spreading out their investments overseas. There are also growing investments in neighbouring countries such as Laos, Cambodia and Vietnam.http://www.bangkokpost.com/learning/learning-from-news/257320/why-invest-in-thailand

> Show Info> About Thailand marketWhy Thailand?

Economics & Politics

After an incident-free general election in July 2011, investors feel positive about the political situation in Thailand.

GDP growth: 4.5%

Foreign Direct Investment: USD 14 billion in 2011 expected, 70% growth

The Thai government is investing USD 48 billion on the "Strong Thailand Scheme," a programme to build better infrastructure

Security Market

Thailand is the largest security market in ASEAN

Market size: over USD200 million with 30% growth expected

Hot verticals:

City surveillance-City Safe Project: finish installing 20,000 CCTV by 2012-Surveillance upgrade and new projects are planned for Southern Thailand.

Transportation-High speed rail: USD 23.7 billion allocated to construct 4 high speed rail routes-Bangkok metro systems: construction and extension projects create great demand

Remote monitoring-3G network will open by the end of 2011-72.5 million mobile subscribers by 2014-Smart phone ownership will double next year

Financial Institutions-Demand video analysis to help business management- Liberalisation policy stimulates more banks to open

Commercial buildingsBuilding projects expected to increase 7% in 2011

Fire & Safety Market

Serious flood in Thailand drives demand for fire & safety and rescue products.

Building Control Act results in 15,000 20,000 buildings needing new fire prevention equipments. Requirements include installation of fire detectors, alarms, and suppression systems, fire exits and signs, emergency lights, venue capacities and fire evacuation rehearsals.

Stringent fire protection demanded: Fire compartments, fire safety training, fire protection systems testing, and maintenance and fire safety plans required for moderate to high-risk factories in 48 manufacturing sectors such as food, textile garments, furniture, chemical, plastic, pulp and paper, printing, petroleum refinery, rubber and power generation.

Fire alarm market size: estimated at USD 60 million