The SET adds Mark C or Warning measures to help warn investors to be more cautious in investing.

March 25, 2024

Collection x Longtonman
Recently, the SET added measures to mark it as C or Caution.
To help remind investors to be more careful in investing.

Mark C will be divided according to the reason for its occurrence, e.g

– Financial status CB (Business).
– Financial Statements CS (Financial Statements).
– CC (non-compliance) does not comply with standards.
– The CF ratio (free shares) of small shareholders does not meet the criteria.

Investors will be able to purchase shares marked C using only the cash balance account.

What is a C-tag and what benefits do investors get from it?

C or caution sign is a warning sign for investors to be careful when investing. Because the listed company has an event that may affect its financial position. and business operations

Therefore, there are new standards for setting the C mark to be more comprehensive. Besides C-marks are categorized according to different reasons so that investors can see the risks in their financial situation. Financial liquidity performance, including the presence of qualifications that do not meet the specified standards

For C listed companies, investors must purchase securities using a cash balance account and the listed company must hold a meeting. Providing information to investors and related parties (public presentation) during the specified period.

Let's take a look at the details of the new C mark standards together.

1. The CB (Business) sign indicates financial risk.

Previously, the stock exchange had guidelines to consider the C mark for the following reasons:
– Shareholders' equity is less than 50% of the paid-up capital. By looking at the quarterly budget or annual budget.
– The court accepts applications for business rehabilitation or bankruptcy, and will consider them when such events occur.
– The regulatory authorities order the correction of the financial situation / suspension of some operations /
Temporarily disallows business expansion that would have a significant impact on operating results considering the time of such event

Recently, considerations have been added that cover financial risks in more depth. To help increase investor confidence, it consists of:

– Companies listed on SET and Mai have operating income of less than 100 million baht and 50 million baht, respectively, based on annual financial statements.

– A net loss occurred for 3 consecutive years until shareholders' equity became less than paid-up capital. By looking at the annual financial statements.

– Default on the financial institution's debts or debt instruments considered at the time of such event

2. The CS (Financial Statements) symbol indicates financial statement risk.

The original reason was that the SEC ordered an audit of the financial statements. Or there was an order to conduct a special audit and the reasons for considering it were expanded in all cases in which the auditor’s report did not express an opinion on the financial statements. By looking at the quarterly budget or annual budget.

3. The CC (non-compliance) mark indicates non-compliance with the standards.

Previously, the standards covered the case of listed companies with all their assets. Or almost all of it in the form of cash or short-term securities (cash company) and additional reasons are added in case the Audit Committee (AC) has less than 3 people for a period of more than 3 months.

4. CF mark (free shares), the distribution ratio of small shareholders' shares does not meet the standards.

Share trading and implementation procedures have been improved to speed up the process of qualifying listed companies to meet the specified standards. Because the liquidity of securities is considered an important factor that will increase investment interest in listed companies. This will make for easy and successful fundraising. Listed companies are required to maintain a total contribution percentage for small shareholders (free shares) of no less than 15% of the paid-up capital. Or the number of cases must not be less than 150, and if it is not as specified, a CF mark will be published.

All these are details of the four types of C marks issued by the Stock Exchange of Thailand. Added to cover more different reasons. It also helps to warn investors before making further investment decisions.

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