The Stock Exchange of Thailand recognizes the crucial role investor protection plays in

enhancing investor confidence and contributing to market growth. Such protection is best
understood as a combination of different, but closely integrated measures - including, but
not limited to, market regulation & enforcement, trading and settlement system reliability,
information disclosure and equal accessibility. Consequently, SET has established the
Securities Investor Protection Fund or SIPF in cooperation with some of its member firms who
volunteered to join the fund. Its purpose is to create confidence among investors who trade
securities on the Exchange through the Fund's member brokers. Investors who are clients of
SIPF members can receive their assets back or compensation for the price of assets from
this fund in certain circumstances as defined in the regulations.
Market Regulation
Market players, including member companies, stockbrokers, custodians, and listed
companies, are regulated and must follow strict rules. Both the Securities and Exchange
Commission (SEC) and the Stock Exchange of Thailand (SET) play an important role in
regulatory enforcement; however, investors are advised to take the first step in investor
protection by ensuring that they deal only with securities companies licensed by the Ministry
of Finance upon a recommendation of the SEC. Investors are also encouraged to report any
suspected misconduct or to file a complaint formally to the SET, the SEC or the Economic
Crime Division of the Royal Thai Police.
Systems Reliability
The SET trading system has been fully-computerized since 1991, expanding trading capacity
as well as improving efficiency and transparency. The trading system, the ARMS, has the
capacity to handle 600,000 orders daily.
Clearing and Settlement Process
To ensure investor confidence during the whole trading cycle, the reliability of the clearing
and settlement process is also of great importance. Clearing and settlement is handled by
The Thailand Securities Depository Company Ltd. (TSD), which also handles securities
deposits and is Thailand's main share registrar. The SET clearing and settlement cycle of T +
3 is on par with global standards. The TSD has also been addressing risk management to
minimize settlement risk for all members. The TSD will:

Implement Delivery-Versus-Payment (DVP) to be aligned with international standards

as well as reduce the risks involved for investors .

Move towards Real Time Depository Registration (RTDR) to enable investors and
listed companies to access shareholder information instantly, enhancing trading
efficiency and risk management, as well as reducing expenses for listed companies.

Move to a 100% scripless system to enhance efficiency with risk management and
settlement as well as reduce expenses with regard to share certificate issuance. The
SET will coordinate closely with relevant government parties in this regard.

Facilitate Straight Through Processing (STP) to enable a shift to T+2 settlement, and
integrate relevant information to institutional investors and custodian banks. STP will

support the reduction of expenses as well as facilitate the investment process for
foreign institutional investors.

Employ a clearing fund to provide security against damages caused by any

settlement default. This fund has been established by the TSD already. Both the
Stock Exchange of Thailand and TSD fund members contribute to the fund.

Market supervision
The market surveillance functions at the Stock Exchange of Thailand are enhanced by a
computerized electronic monitoring system. Comprised of three main systems for the alert,
detection and documentation functions, the ATOMS system was introduced in 1995 to
monitor, analyze and facilitate the investigation of suspicious activities. Its effectiveness and
reliability continue to play a key role in ensuring proper surveillance, exposing trading
malpractice, supporting Exchange investigations and effective enforcement in the process.
You can see more details in Market Supervision section.
Information Disclosure
In line with the global trends of capital markets with regard to disclosure-based screening for
listing securities on the Exchange, a key goal of the Stock Exchange of Thailand is to develop
a "well-informed" market by ensuring full disclosure of important information deemed
relevant to investor's decision-making. This will ensure that investors are well-placed to
assess, and protect their own interests in the market. Investors are also invited to conduct
their own market research by accessing the SET market data section.

http://www.set.or.th/en/regulations/protection/protection_p1.html

Securities Investor Protection Fund (SIPF)

SIPF originated from cooperation between The Stock Exchange of Thailand (SET) and some
of its member firms who volunteered to join the fund. Its purpose is to create confidence
among investors who trade securities on the Exchange. Investors who are clients of SIPF
members can receive their assets back or be compensated from this fund under the
conditions outlined below.
Investors Protection
SIPF provides protection to investors who fail to receive returns on their assets or
compensation for the price of assets from SIPF members if :
1. any member broker of SIPF is adjudicated bankrupt
2. any member broker of SIPF fails to comply with an arbitral award requiring them to return
the assets or compensate for the price of assets to investors.
This protection does not include losses incurred from price decreases due to the securities
trading.

Compensating to Investors
The investors shall be entitled to compensation for assets or compensation for the price of
assets from the Fund not exceeding the actual damage incurred to them and each investors
will get no more Baht 1 million per one SIPF's member broker.

How to Request this Protection

Investors are automatically protected when they open a trading account as long as their
broker remains a SIPF member. Moreover, investors need not apply for this protection or pay
anything.

Requesting this Protection

When a fund member fails to return an investors assets, the investor has the right to
request protection from the Fund through Member Services Department at SET.

Related Regulation
1. Regulation - Protection for Securities Investors (Update Nov 11, 2013)
2. Regulation - Membership of the Securities Investor Protection Fund (Update Nov 11,
2013)
3. Regulation - Use of Logo of the Securities Investor Protection Fund
A List of Fund Members
SIPF protects only those investors who are fund members customers, so investors should
examine a list of fund members or see if their brokers offices or brochures have the SIPF
logo.

Why invest in Thailand?

Waltr bau case
Thailand's ongoing court case against Germany's Walter Bau AG will have
a positive impact on investor confidenceand give the government second thoughts about
changing regulations that affect foreign investors' rights in the kingdom, says a leading law firm.
Instead of focusing on the negative sentiment the case created, partners at Baker & McKenzie see
the legal disputebetween the Thai government and the bankrupt German construction firm as setting a standard
in terms of foreign investment protection.
The case stems from a Thai government contract with the German builder more than 20 years ago to build and
operate a tollway to Don Mueang airport.
Courts ruled that the Thai government breached several contractual obligations and must pay US$42 million it

owes the company.

The case became a major diplomatic incident earlier this year when the liquidators of Walter Bau seized a
passenger jet belonging to His Royal Highness Crown Prince Maha Vajiralongkorn in Germany in order
to enforcetheir claim. The jet was subsequently released when it was established that the Crown Prince and
not the Thai government was the plane's owner.
"The Walter Bau case has brought about positive results because the firm won the case against the Thai
government," said Wynn Pakdeejit, a partner in the dispute resolution group at Baker & McKenzie.
Anything that affects investment protection, if the government breaches, it has to pay the compensation.
The Walter Bau case was applied under bilateral investment treaties between Thailand and Germany.
Such agreements between two countries cover promotion and protection of investments in each other's territory by
companies based in either country.
Thailand has signed such agreements with 40 countries, including Germany, China, England, Canada, South Korea,
Laos, Cambodia, India, the Philippines and Indonesia. Of the total, 35 have come into effect, according to the United
Nations Conference on Trade and Development data as of June 1 this year.
The treaties ensure that foreign investments in Thailand are afforded a degree of protection and so are Thai
investments in other host countries.
A number of incidents in recent years raised concerns about investment protection in Thailand, such as
the politicalprotests that led to temporary closures of international airports and the Ratchaprasong intersection.
Thus far, no cases have been initiated by foreign investors under the treaties, said Mr Wynn.
Even so, some international investors have approached Baker for consulting related to investment protection. Pisut
Attakamol, also a Baker partner, said the Walter Bau case could be a lesson for the Thai government about
majorpolicy backtracking.
"The case indicates that before a significant change of policy, the government should have a second thought," Mr
Pisut said.
Thailand has seen some recent policy changes by the government concerning foreign investments, led by policies to
promote ethanol production and eco-cars.
The Map Ta Phut impasse, which prompted a court ruling to halt operations of 76 industrial projects in
Rayong on environmental grounds, is a major concern of foreign investors here.
"Laws must have stability and then effective enforcement, both of which have seen an improvement in Thailand,"
Mr Wynn said. "But there's room for improvement in both stability and enforcement.
At the same time, Thai companies should be aware of protection under bilateral investment treaties before investing
abroad.
Large Thai corporations have been spreading out their investments overseas. There are also growing investments
in neighbouring countries such as Laos, Cambodia and Vietnam.

http://www.bangkokpost.com/learning/learning-from-news/257320/why-invest-inthailand

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About Thailand market

Why Thailand?
Economics & Politics
After an incident-free general election in July 2011, investors feel positive about the political situation in
Thailand.
GDP growth: 4.5%
Foreign Direct Investment: USD 14 billion in 2011 expected, 70% growth
The Thai government is investing USD 48 billion on the "Strong Thailand Scheme," a programme to
build better infrastructure
Security Market
Thailand is the largest security market in ASEAN
Market size: over USD200 million with 30% growth expected
Hot verticals:
City surveillance

-City Safe Project: finish installing 20,000 CCTV by 2012

-Surveillance upgrade and new projects are planned for Southern Thailand.

Transportation

-High speed rail: USD 23.7 billion allocated to construct 4 high speed rail routes
-Bangkok metro systems: construction and extension projects create great
demand

Remote monitoring

-3G network will open by the end of 2011

-72.5 million mobile subscribers by 2014
-Smart phone ownership will double next year

Financial Institutions

-Demand video analysis to help business management

- Liberalisation policy stimulates more banks to open

Commercial
buildings

Building projects expected to increase 7% in 2011

Fire & Safety Market

Serious flood in Thailand drives demand for fire & safety and rescue products.

 Building Control Act results in 15,000 20,000 buildings needing new fire prevention equipments.
Requirements include installation of fire detectors, alarms, and suppression systems, fire exits and signs,
emergency lights, venue capacities and fire evacuation rehearsals.
Stringent fire protection demanded: Fire compartments, fire safety training, fire protection systems
testing, and maintenance and fire safety plans required for moderate to high-risk factories in 48
manufacturing sectors such as food, textile garments, furniture, chemical, plastic, pulp and paper,
printing, petroleum refinery, rubber and power generation.
Fire alarm market size: estimated at USD 60 million