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Company's Business

Securities Brokerage

The Company has been approved by Ministry of Finance to operate the following eight businesses:

  1. Securities brokerage
  2. Securities trading
  3. Securities underwriting
  4. Investment advisory service
  5. Mutual fund management
  6. Private fund management
  7. Securities borrowing and lending
  8. Venture capital management

Furthermore, the Company obtained a Derivatives Business license from Securities and Exchange Commission to engage in Derivatives Agent and was approved from Securities and Exchange Commission to act as Financial Advisory.

  1. Securities trading business
    The Company’s investment policy (both short and long term) focuses on Bill of Exchanges and Bonds. The Investment Committee was appointed to determine a clear investment guideline and its policy. Limits and strategy are meticulously placed for each type of investments prior to selling to our clients. Moreover, the Company planned to expand its Bond’s customer portfolio through Institution clients and retail customers.
  2. Brokerage business
    The Company is the Stock Exchange of Thailand’s third brokerage firm to be established. The Company provides brokerage services for individual, juristic, and institutional clients, both local and foreign. To date, The Company has a total of 45 branches nation wide. We provide highly experienced brokers and teams of analysts to advice and answers (both in technical and fundamental aspects) to any clients demand. More over, Investors are able to trade securities, read analyst reports, and find may investment informations through the Company’s website or phone applications (IOS and Android). Clients can open upto three trading accounts with the Company : Cash, Cash Balance, and Credit Balance. As of 2015, the Comapny has 66,393 trading accounts, of which 21,329 accounts are actively traded.

    For the past three years, the Company’s market shares (Volume and Values) were the following:

    Unit : Million (Except specified)

    Trading Value 2013 2014 2015
    SET 11,777,210.10 10,193,179.07 9,997,371.75
    MAI 553,458.69 946,111.84 768,097.75
    Trading Value of the Company 1,070,610.18 632,781.88 539,076.30
    Market share (%) 4.97 3.11 2.76

    Policy on approving clients credit line

    The Company sets clear policy on setting the appropriate client’s credit limit. Clear policy and guideline will help the Company to control and mitigate the client’s investment risks to be at the appropriate level. The process of opening and approving client’s new account and his credit limits are all documents in writings. The policy mandates that prior to opening the new account, Marketers should know their customer’s investment profile prior to giving them investment advices. This will ensure that the Comapny’s services will answer to all client’s investment objectives, risk appetites, conditions, and purchasing power. The Company’s new clients credit limits policy is in line with the rules and regulations from the Stock Exchange of Thailand (SET) and the Stock Exchange Commission of Thailand (SEC). We also have clear preventive measures against those who use the Brokerage as a mean to money laundering or terrorist funding.

    Approval Matrix

    In order to increase the efficientcy of the new applicant’s process, the approval matrix for the new applicant’s credit limit is per follow:

    Credit Line Authorized Persons
    Not exceeding Baht 2 million Managers – Securities Business Div./Branch Office Or of higher position
    Not exceeding Baht 20 million Head of Securities/ Derivatives Business Div./ Or of higher position
    Not exceeding Baht 30 million Managing Director of Business Div./ Or of higher
    Not exceeding Baht 50 million Credit Committee Or Higher
    Not exceeding Baht 150 million Executive Committee Or Higher

    The Credit Committee consists of the following members:

    1. Executive Director: 1 person
    2. Head of Securities Business : 2 people
    3. Head of the Derivatives Business Division: 1 person
    4. Head of the Risk Management Division: 1 person

    A credit line is “approved” when at least half of the attending committee members give their approval.

    Policy on setting the marginable securities

    It is the Company’s policy to allow trades on marginable securities to be only within the pre approved list. The list will comprise of marginable securities that are evaluated, each based on its business performance, assets, and liquidity. The approved list of marginable securities together with its interest rates will be announced through company’s communication channels (per SET and SEC regulations). The Comapny appointed the Risk Management Committee to set the list of marginable stocks and their interest rates. Clients can invest into these equities through their Credit Balance accounts. The Risk Management committee consists of one Executive Committee, two Heads of Securities Business Division, one Head of Risk Management Division, one Head of Securities Operation, and one Head of Research Division. The Client’s credit line is approved when at least three out of six committee members agreed. The list of marginable securities and thier initial margins is reviewed at least once every quarter or more frequent (depending on the situation).

    The policy on the initial margin’s rate is categorized into groups based on different risk level per follow:

    Type Margin’s rate (%)
    A 50
    B 60
    C 70
    F 100
    N 0
    Notes
    - The securities type A, B, C and F are classified as liquidable equities and could be used as marginable securities for above credit limit ratio.
    - The securities type N are clarified as a non marginable securities, and are not applicable.
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