Mitihoon – The Securities and Exchange Commission (SEC) is seeking public comments on proposed amendments to the rules governing short selling transactions and securities borrowing and lending (SBL) services provided by securities companies. The aim is to ensure that these services are appropriate, efficient, and enhance regulatory oversight in line with the current capital market environment.
The SEC proposes to amend the short selling rules to reflect current capital market context. In developing the proposals, the SEC has conducted a public hearing on the proposed principles, engaged in ongoing discussions with the private sector and relevant stakeholders, and taken into account feedback—most of which supports the overall principles—along with suggestions to refine the rules for greater suitability, align with brokerage practices, and reduce unnecessary burdens on business operators. Key proposed amendments include:
(1) Clarifying the definition of short selling transactions;
(2) Enhancing the efficiency of short selling services, such as Know Your Customer (KYC) procedures for inter-broker* clients, and short selling order acceptance and transmission process;
(3) Requiring clients to provide assurance that clients have borrowed or located
a source of securities borrowing before placing short selling orders. Moreover, the SEC proposes to remove the requirement for brokers to include a clause in the service agreement requiring clients to pay compensation if brokers are penalized due to the client’s fault.
In addition, the SEC proposes to improve the SBL service rules for more clarity by emphasizing that securities companies must have effective risk management systems and only lend or confirm the availability of securities for lending when sufficient securities are actually held. This measure aims to prevent risks arising from lending or confirming lending more than available securities.
The consultation paper is available at on the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1136 and the legal hub at https://law.go.th/listeningDetail?survey_id=NjQxM0RHQV9MQVdfRlJPTlRFTkQ=. Stakeholders and interested parties are welcome to submit comments and suggestions via the SEC website or by email at laksika@sec.or.th, gritchanut@sec.or.th, phachisa@sec.or.th or anudporn@sec.or.th. The public hearing ends on 11 February 2026.
Notes:
*Inter-broker refers to securities companies under foreign law and acting as brokers or agents in trading or exchange of securities for others.
** Session 3.2.1, consultation paper AorNorPor. 41/2567
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