Following Thailand’s recent expansion of the “major shareholder” definition for securities and digital asset businesses, the Securities and Exchange Commission (SEC) launched a public hearing on April 7, 2026, on expanding the major shareholder definition further to cover funding sources behind share acquisitions in licensed securities and digital asset business operators. The public hearing will remain open for 15 days from the launch date, after which the proposed expansion is expected to take effect promptly so that operators can comply with both the earlier and additional requirements within the 180-day transitional period under the earlier regulations. Funding Sources Captured Under Control-Based Test Under the draft rules, persons who fund direct or indirect major shareholders’ acquisition of shares in a licensed operator would be deemed “controlling persons” and subject to SEC approval as major shareholders. This extends beyond traditional lenders to include guarantors, counterparties to derivatives or structured products, and any arrangement that results in a person being, directly or indirectly, a source of funding to a major shareholder. The SEC proposes to exempt three categories of funding arrangements from approval: Loans from Thai licensed financial institutions or BCBS (Basel Committee on Banking Supervision)-jurisdiction foreign banks; Margin loans for securities trading under Thai securities law; and Repurchase agreements under Thai securities law. Exemptions for Funding Sources of Government-Linked Entities The consultation proposes to stop look-through beyond the level of certain government-linked shareholders, including, without limitation, ministries, departments, bureaus, public organizations, independent agencies, and certain state enterprises. The SEC reasons that these entities’ mandates, duties, and funding sources are already subject to government oversight and audit, presenting minimal ownership-structure risk. Practical Implications Licensed securities and digital asset business operators should begin mapping their funding chains under the expanded definition in preparation for filing approval applications for any newly captured funding providers

Thailand’s Securities and Exchange Commission (SEC) has established a comprehensive governance framework for the use of artificial intelligence and machine learning (AI/ML) in the capital markets. The framework provides guidance to capital market business operators on understanding the risks associated with AI/ML implementation and adopting appropriate practices to build public confidence in Thailand’s capital markets. While the guidelines are principle-based rather than prescriptive, they reflect the SEC’s expectations for responsible AI/ML governance and are likely to inform supervisory activities and industry standards going forward. Scope The framework applies to capital market business operators supervised by the SEC. This includes, for example, securities and derivatives firms, asset management companies, mutual fund and private fund managers, investment advisors and investment consultants (including robo-advisory service providers), derivatives intermediaries, and other licensed intermediaries and market operators in the Thai capital markets that deploy AI/ML in their operations. Core Principles of the Guidelines The framework is presented as a best-practice manual rather than prescriptive regulation, providing guidance that regulated entities may apply to their AI/ML governance and risk management as appropriate. While currently nonbinding, the guidelines signal the SEC’s expectations for the sector, particularly in relation to other binding SEC regulations such as those covering IT risk management and market conduct. The guidelines name four core principles for AI/ML deployment: Fairness: Design and develop AI/ML with consideration for fairness, equality, and social diversity to prevent discrimination against individuals or groups. Legal and ethical compliance: Ensure AI/ML use aligns with applicable laws, ethical standards, and organizational values and policies. Accountability: Establish clear responsibility—both internally and externally—for AI/ML activities and outcomes. Transparency: Provide adequate disclosure to users about AI/ML use, including explainability of decisions and traceability of activities. AI/ML Best Practices The guidelines prescribe best practices across four stages of the AI/ML lifecycle, as described below.

Thailand’s Securities and Exchange Commission (SEC) has broadened the definition of institutional investors, expanded the types of qualifying investments, and updated financial qualification thresholds for various investor categories through a revised notification on the definitions of institutional investors, ultra-high net worth investors, and high net worth investors. The amended framework, which came into force on March 1, 2026, adds digital asset business operators, investment planners, and investment consultants to the roster of entities recognized as institutional investors, and broadens the definition of investment to account for digital tokens. Expanded Definition of Institutional Investors Under the SEC’s revised notification, the category of institutional investors now expressly includes digital asset business operators licensed under the Royal Decree on Digital Asset Businesses B.E. 2561 (2018). This addition recognizes the growing role of digital asset platforms and service providers in Thailand’s investment ecosystem and aligns the regulatory treatment of digital markets with that of traditional markets. The definition of institutional investors now also encompasses investment planners and investment consultants approved by the SEC. Previously, only SEC-approved investment analysts held this status; the expansion covers a broader scope of professionals who possess comparable expertise and experience in evaluating investment opportunities. Broadened Investment Definition The revised framework now defines investment to mean direct or indirect investment in a wider range of assets beyond deposits. Specifically, the definition covers: Securities under the Securities and Exchange Act Derivatives under the Derivatives Act Investment tokens offered to the public Government-issued digital tokens (G-tokens) as specified in a separate SEC notification This expansion ensures that financial status assessments reflect the full spectrum of an investor’s holdings, including emerging digital assets. Updated Financial Qualification Thresholds The amended SEC notification also provides updated qualification thresholds for angel investors, ultra-high net worth investors, and high net worth investors. While the core criteria

Thailand’s Ministry of Finance and Securities and Exchange Commission (SEC) have issued regulations broadening the criteria for determining who qualifies as a “major shareholder” of licensed securities and digital asset business operators. Under relevant SEC regulations, major shareholders of a regulated entity must obtain regulatory approval and undergo screening by the SEC. The revised framework introduces both shareholding-based and control-based tests to determine which shareholders require regulatory approval for a wider range of indirect ownership structures and de facto control. The Ministry of Finance notification took effect on February 21, 2026, while the SEC’s clarifying rules took effect on March 4, 2026. These changes aim to enhance transparency around beneficial ownership and strengthen regulatory oversight of entities operating in Thailand’s capital markets. Expanded Definition Under the revised framework, a “major shareholder” now includes persons who directly or indirectly hold more than 10% of the voting rights in a regulated company, as well as persons who exercise control over the regulated company or its shares. This system of two separate tests, based on both shareholding and control, differs from the prior regime, which focused primarily on shareholding thresholds and applied a more limited method for determining indirect shareholdings. The two tests (detailed below) operate independently of each other, and any person identified by either of the tests will be deemed a major shareholder. Shareholding-Based Test Broadens Indirect Ownership Attribution For the shareholding-based test, the SEC recognizes two existing methods for identifying indirect ownership, together with a new proportional attribution method. Any person captured under these methods, which are described below, will be regarded as a major shareholder of the regulated company and must obtain SEC approval as a major shareholder. First, the existing framework continues to apply to both first-tier and chain ownership structures. Approval is required for (1) first-tier