Thailand Securities and Exchange Commission opens public hearing on amendments to short selling and securities borrowing and lending rules

The Thailand Securities and Exchange Commission has launched a public consultation on proposed amendments to the rules for short selling transactions and securities borrowing and lending (SBL) services provided by securities companies, aiming to align requirements with current capital market conditions and strengthen regulatory oversight. For short selling, the proposals would clarify the definition of short selling, streamline service processes including Know Your Customer procedures for inter-broker clients and the order acceptance and transmission process, and require clients to provide assurance that they have borrowed or located a source of securities borrowing before placing short selling orders. The SEC also proposes removing the requirement for brokers to include a contractual clause requiring clients to compensate brokers if the broker is penalized due to the client’s fault. For SBL, the amendments would emphasise clearer controls requiring effective risk management and limiting lending or confirmations of lending availability to cases where sufficient securities are actually held, to prevent risks from lending more than available securities. The public hearing is open for feedback until 11 February 2026.