Revolutionary Digital Infrastructure Transforms Thailand’s Capital Market

(CTN NEWS) – Thailand’s capital market has recently witnessed the establishment of a revolutionary digital infrastructure, thanks to the collaborative efforts of the Stock Exchange of Thailand, the Association of Thai Securities Companies, and the Thai Bankers’ Association.

This cutting-edge system aims to facilitate fully electronic end-to-end bond offerings, with the primary goal of enhancing efficiency and transparency in the Thai market.

The comprehensive solution encompasses a wide range of services, including issuance, filing, subscription, payment, and delivery.

The Digital Infrastructure: A Cost-Effective Asset for Fundraisers and Investors

This digital infrastructure presents a significant and cost-effective asset for both fundraisers and investors, providing them with streamlined processes and improved accessibility.

Referred to as the Digital Infrastructure (DIF) Web Portal, this robust platform is poised to digitally transform Thailand’s capital market. Its implementation reflects a proactive approach to keeping pace with the rapidly evolving global trends.

In a recent statement, executives emphasized the importance of this development in supporting the market’s adaptability and ensuring its sustainability.

Thawatchai Pittayasophon, the interim secretary-general of the Securities and Exchange Commission, stated, “This portal represents a crucial turning point in our capital market, seamlessly connecting the efforts of market participants and transitioning it into a fully-digitized process. This transformation will create a competitive edge, enhance efficiency, and drive sustainable growth in the capital market.”

A cutting-edge digital infrastructure project, initiated in late 2019 with the support of the Capital Market Development Fund (CMDF), has been incorporated into Thailand’s fourth capital market development plan, scheduled for implementation from 2022 to 2027.

As explained by Pakorn Peetathawatchai, President of the Stock Exchange of Thailand (SET), the DIF Web Portal enables end-to-end electronic bond offerings in the primary market, including the settlement and delivery of debt instruments in a scriptless form.

Financed by the CMDF, the system is owned by CMDF Digital Infrastructure Co., while day-to-day operations will be overseen by the Thai Bond Market Association (ThaiBMA), as the system operator, according to a report by Bangkok Post.

The DIF Web Portal: Enabling Electronic Bond Offerings and Scriptless Settlements

ThaiBMA President Somjin Sornpaisarn further emphasizes that the DIF Web Portal plays a dual role, serving as both the registrar for debt instruments and the operator of this extensive project.

In May, the system was officially launched, allowing four pioneering companies—PTT Plc, PTT Exploration and Production Plc, Toyota Leasing (Thailand) Co, and Kasikornbank—to issue bonds. The fundraising efforts resulted in a cumulative total exceeding 6.6 billion baht.

By harnessing advanced technology, the DIF Web Portal seamlessly integrates with the digital bond offering transaction system. This establishes an end-to-end connection that utilizes digital standard messages across all sectors involved.

According to Somjin Sornpaisarn, the integration of this digital infrastructure in the Thai capital market will significantly enhance efficiency within the investment ecosystem and foster the development of new investment products in the future.

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