Digital infrastructure to revolutionise Thailand’s capital market

A revolutionary digital infrastructure has been established in Thailand’s capital market, following collaborative efforts by the Stock Exchange of Thailand, the Association of Thai Securities Companies, and the Thai Bankers’ Association. The state-of-the-art system, aimed at fully electronic end-to-end bond offerings, was presented in an attempt to enhance the Thai market’s efficacy and transparency.

This dynamic solution covers a broad spectrum of services including issuance, filing, subscription, payment, and delivery, making it a substantial cost-effective asset for fundraisers and investors alike.

The robust Digital Infrastructure (DIF) Web Portal is set to digitally transform the country’s capital market, aiding it in staying abreast of the rapidly changing global trends, as stated by executives yesterday. Thawatchai Pittayasophon, the interim secretary-general of the Securities and Exchange Commission, said…

“This portal marks an important turning point in the capital market, connecting the work of market participants to transform it into a fully-digitised process to create a competitive edge, boost efficiency and push the capital market towards sustainable growth.”

This avant-garde digital infrastructure project, initiated at the tail end of 2019 with the backing of the Capital Market Development Fund (CMDF), has been incorporated into the fourth Thai capital market development plan set to roll out from 2022 to 2027.

According to SET President Pakorn Peetathawatchai, the DIF Web Portal facilitates end-to-end bond offerings in the primary market electronically, including the settlement and delivery of debt instruments in a scriptless form.

The system was borne out of finances from the CMDF and consequently, the property is owned by CMDF Digital Infrastructure Co. Day-to-day operations will be under the purview of the Thai Bond Market Association (ThaiBMA), the system operator, Bangkok Post reported.

Echoed by ThaiBMA President, Somjin Sornpaisarn, the DIF Web Portal serves a dual role, functioning not only as the debt instrument registrar but also as the business operator of the extensive project.

The system’s inception in May marked the launch of bond issuances by four pioneering companies: PTT Plc, PTT Exploration and Production Plc, Toyota Leasing (Thailand) Co and Kasikornbank. The fundraising resulted in an accumulative total exceeding 6.6 billion baht.

By leveraging advanced technology, the DIF Web Portal synchronises with the digital bond offering transaction system. This harbours an end-to-end connection utilising digital standard messages with all sectors involved.

Somjin Sornpaisarn articulates how the integration of this digital infrastructure in the Thai capital market will markedly enhance the efficiency within the investment ecosystem and cultivate the evolution of new investment products in the future.