Sep. 30--The Securities and Exchange Commission (SEC) expects to use disclosure-based rules to qualify companies wishing to seek listings on the stock market by the middle of 2011.

Vasant Thienhom, an SEC senior assistant secretary-general, said the new disclosure-based rules would allow financial advisers to oversee companies, which seek to list on the stock exchange, to disclose adequate information to investors during the initial public offering.

"Financial advisers are responsible for information disclosed by company, whether it's sufficient and correct or not. This self-regulating rule will eventually replace the strict enforcement by the SEC," he said.

However, the SEC will still use its discretion to approve applications and will work with the Stock Exchange of Thailand to monitor and sanction companies violating disclosure rules.

Currently, the SEC is drafting the disclosure rules for companies wishing to seek listings. The agency will also discuss the proposals with financial advisers and investment bankers.

"We want all related parties including the SET, financial advisers and IBs to work as a team in considering the information of companies that will be listed on the exchange," Mr Vasant said.

The new rule will move toward more information disclosure and investors could benefit from it, he added.

Financial advisers that cannot operate to meet the standard could face the highest sanction, which is to forfeit the right to bring new listings to the market.

Chanitr Charnchainarong, president of the Market for Alternative Investment (MAI), said that five to seven companies were expected to seek MAI listings over the next three months on the back of positive market conditions.

Currently, seven companies have filed listing applications to list on the main board and 11 on the MAI.

In a related development, the SET said it was in the process of selecting a system provider for a regional cross-border securities trading platform or Asean linkage.

SET president Patareeya Benjapolchai said talks were expected to be finalised this year and trading to start next year.

The New York Stock Exchange (NYSE) is among the two system providers the SET is considering. Five Asean members have agreed to establish the Asean Linkage: Malaysia, Singapore, Thailand, Indonesia and the Philippines. Vietnam may also participate.

The first matching of cross-border trading between the Malaysian and Thai exchanges is expected next year.

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