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Bangkok Post
Bangkok Post
Business

Organisations to amend legal framework for bonds

ThaiBMA aims to strengthen protection for retail investors by introducing stricter bond covenants to prevent misuse of proceeds, including limits on dividend payments, share buybacks and additional borrowing that could weaken an issuer's repayment capacity, says Ms Ariya.

The Thai Bond Market Association (ThaiBMA) is working with the Securities and Exchange Commission (SEC) to amend the Securities and Exchange Act and bankruptcy law, closing legal loopholes that have allowed some bond issuers to avoid repayments through rehabilitation proceedings.

The move follows a series of high-profile defaults that have damaged confidence in Thailand's debt market, said ThaiBMA president Ariya Tiranaprakit.

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