Powers and Duties of the Securities and Exchange Commission under the Securities and Exchange Act B.E. 2535

Abstract

This research Article aims to study the powers and duties of the Securities and Exchange Commission under the Securities and Exchange Act B.E. 2535 (1992), including an analysis of relevant concepts and theories. It also compares these powers and duties with those of securities and exchange commissions in other countries by examining the legal frameworks of both common law and civil law systems. The objective is to evaluate the effectiveness of the current system and propose improvements that align with the evolving social, economic, and capital market contexts of Thailand. The study found that the Securities and Exchange Commission (SEC), established under the Securities and Exchange Act B.E. 2535 (1992) as the principal regulatory body responsible for overseeing and promoting fairness in Thailand’s capital market, still faces several limitations in performing its duties. These limitations are particularly evident in the use of proactive measures to effectively prevent damage to the capital market system. Specifically, the current Securities and Exchange Act B.E. 2535 lacks clear provisions regarding the authority to suspend transactions or securities offerings in cases involving disputes over share ownership or when there is a lack of transparency in the disclosure of information by securities issuers. As a result, the SEC is often unable to take timely preventive action to protect investors from potential harm. To strengthen the powers of inspection and investigation, the provisions relating to investigations, specifically Sections 58 and 264, should be amended to allow the Securities and Exchange Commission to access information without court approval and to have the power to conduct preliminary investigations and order a suspension of transactions during the investigation process.