Bangkok – The Stock Exchange of Thailand is preparing to add a warning symbol to companies undergoing troubling developments.
SET President Kesara Manchusree said the letter C for Caution will be attached to companies that are experiencing apparent trouble such as a shareholder drop of over 50 percent, are undergoing reorganization, have restrictions on their operations, lack commentary by auditors, or are undergoing SEC investigation. Investors will only be able to trade the cash balance of the stock to reduce risk.
The SET will display the C warning a day in advance and the company will need to provide an explanation within 15 days in addition to quarterly updates until the issue is resolved. The new policy will take effect on July 2 this year. More information can be found at www.set.or.th.