The board of the Securities and Exchange Commission (SEC) is permitted to name an acting secretary-general if the current government fails to endorse an SEC chief by the end of the month, according to Finance Minister Arkhom Termpittayapaisith.
The term of Ruenvadee Suwanmongkol, the current SEC chief, ends on April 30 and the SEC board forwarded the names of two candidates to the Finance Ministry for consideration.
Normally the ministry picks a name from the proposed list and sends it to the cabinet for final endorsement.
In the past, the incoming SEC secretary-general is known at least two months before the tenure of the incumbent ends.
"If an appointment is not made within this month, the SEC board could appoint an acting secretary-general to be in charge," Mr Arkhom told reporters yesterday.
The Fiscal Policy Office said it was still considering the proposed list and Mr Arkhom could not predict how long the process will take.
According to recent reports, the short-listed candidates are Waratchya Srimachand, the current SEC deputy secretary-general, and Assoc Prof Pornanong Budsaratragoon from the Banking and Finance Department of Chulalongkorn Business School.
Ms Waratchya, the most senior among the four deputy secretaries-general of the SEC, is in charge of major functions including market supervision, investment management, marketing intermediaries and IT audits.
The SEC board met a couple times to consider the renewal of Ms Ruenvadee's contract for another term, but eventually decided not to extend her tenure.
If a new SEC chief is not chosen by the end of the month, pundits expect an acting secretary-general to helm the regulator until a new cabinet is formed after the May 14 general election.
An executive from the securities industry who requested anonymity said the position is important given the critical issues facing the regulator, including the stock manipulation and unfair trading charges against More Return Plc (MORE), which has shaken investor confidence in the supervision of the bourse.
Other challenges comprise new asset types such as digital assets, which require strong market knowledge, while the global landscape of stock markets has changed significantly, said the executive.
The regulator is also expected to amend related laws to ensure greater enforcement, said the executive.
"If the process of naming a new secretary-general is delayed slightly, I don't think it will matter," said the executive.
"But if it takes until a new finance minister is appointed, it could cause a problem."
If there is a crisis or critical issue in the stock market, an acting secretary-general might not make a move if it could create a long-term obligation for the organisation.
"We hope a new secretary-general has a strong understanding of the capital market and can deal with issues without discrimination, while being able to enforce the laws no matter who commits an offence," said the executive.
