Thai central bank to soon allow retail stock investors to make own foreign investment


BANGKOK, 8 March 2013  The central bank will soon give a green light to retail investors to make their own investment in foreign stocks while warning all to watch out for an influx of overseas funds.  The Bank of Thailand (BoT)’s Deputy Governor Pongpen Ruengvirayudh said that, under the central bank’s Capital Account Master Plan – Phase 2 that will be put into use in 2014, Thai retail investors will be allowed to make their own investment of no more than 20 million US dollars in foreign stock markets without having to go through the broker.
Mrs. Pongpen stated that such a relaxation means a number of BoT regulations will be legitimately bypassed and more local funds will likely be invested overseas.
However, she noted that investors must possess clear knowledge and understanding while securities and asset management companies must work harder to cope with more fierce competition.
Meanwhile, the BoT’s Deputy Governor added that the central bank will likely adjust upward this year’s economic growth target from its initial projection of 4.9% in 2013, due to a significant increase in domestic demand.