The royal decree that would grant the stock market regulator the authority to submit case files directly to the public prosecutor, bypassing the police as an intermediary, may be indefinitely delayed, as it requires the approval of parliament, says the Stock Exchange of Thailand (SET).
The Security and Exchange Commission (SEC) earlier proposed to the Ministry of Finance the issuance of this decree in order to strengthen its law enforcement powers.
The change is aimed at streamlining legal enforcement, making the process more accurate and responsive to developments in the market.
The move would authorise the SEC to submit case files on violations of securities and exchange laws directly to prosecutors without the involvement of the police, which currently serves as an intermediary prior to prosecution in the investigative process.
According to the SET, the decree was reviewed and endorsed by the Ministry of Finance under Pichai Chunhavajira, the former minister of finance, and approved by the cabinet of the Paetongtarn Shinawatra-led administration. It is now under consideration by the Council of State, which provides legal review before submission to parliament for final approval.
If the administration is confident in its parliamentary majority, it would typically submit the bill for approval to expedite its enforcement, a government source said.
“But currently, the government holds a minority in parliament. If it submits a new bill and parliament rejects it, the government must take responsibility and resign. Knowing this risk, it is unlikely the administration will bring this decree forward anytime soon,” said the source, who spoke on condition of anonymity.
Nevertheless, the measure is seen as a positive step towards improving the efficiency and credibility of law enforcement in Thailand’s capital market. Consequently, the stock market regulator and stakeholders are prepared to proceed once the political climate becomes more favourable, the source added.
SET chairman Kitipong Urapeepatanapong emphasised that strong law enforcement is key to building investor confidence.
Granting the SEC the authority to handle its own case files would shorten legal procedures, minimise market damage, and enhance investor protection, he noted.
“Even though the legal amendment process has stalled and is unlikely to move forward soon due to parliamentary approval requirements, we are exploring alternative approaches,” Mr Kitipong noted.
For instance, the SET is working with the Anti-Money Laundering Office (AMLO) to strengthen asset seizure mechanisms. AMLO will be empowered to freeze or confiscate assets immediately when clear evidence of wrongdoing is found.
“If we wait for lengthy legal procedures, assets are often transferred or hidden beyond reach,” said Mr Kitipong, adding that Thailand’s legal framework is well-designed but enforcement remains a weak point as “wealthy individuals often escape punishment”.
The chairman also urged the media to play a more active role in questioning why high-profile offenders often go unpunished, saying that transparent legal explanations would foster greater acceptance from the public and help restore confidence.
Meanwhile, SET has adopted artificial intelligence to enhance its monitoring of listed companies and detect irregularities more efficiently, he added.