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Thailand eases licensing rules for private equity firms

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Thailand’s Securities and Exchange Commission (SEC) has abolished rules requiring private equity and venture capital firms to apply for securities licenses. The move is intended to make it easier to set up funds, thereby facilitating investment into small- and medium-sized enterprises (SMEs).

"It is necessary to expand access to sources of funding for business of all sizes, especially SMEs," said SEC Secretary-General Vorapol Socatiyanurak. "The capital market can offer diverse financial vehicles and one of the suitable sources for new businesses with high growth potential is private equity."

The regulator will also permit private equity firms to establish trust structures in order to provide greater investment flexibility, according to a statement published on the SEC website.

Furthermore, discussions have been held with Thailand's Revenue Department to offer capital gains tax exemptions to private equity firms that back government-supported businesses. To qualify for the investment, portfolio companies must be technology-based, environmentally friendly and seen to enhance national competitiveness.

The National Science and Technology Development Agency has also been approached concerning incentives for private equity firms that target technology-based businesses.

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