SEC proposes new DR and L&I ETF investment and margin loan rules

Thansettakij•Economy•21m ago

Reader Briefing

The Securities and Exchange Commission (SEC) is seeking public opinion on draft notifications to improve Depositary Receipt (DR) rules and regulations for Leveraged and Inverse ETFs (L&I ETF).

•The SEC is revising DR rules to improve underlying asset quality, transparency, and issuance efficiency.
•Thai ETFs will be permitted to invest in foreign L&I ETFs only as portfolio management tools.
•Securities companies must set Initial Margin (IM) for L&I ETFs to reflect higher risks using leverage as a factor.
•Public feedback is open until December 8, 2026.

Overview

•The Securities and Exchange Commission (SEC) opened a public hearing for draft notifications regarding Depositary Receipt (DR) rules, Thai ETF investment in foreign Leveraged and Inverse ETFs (L&I ETF), and margin loan rules for L&I ETF.
•The Securities and Exchange Commission (SEC) previously held public hearings on the principles of these improvements during June - July 2026 and September 2026.
•The Securities and Exchange Commission (SEC) proposes that foreign ETFs used as underlying assets for DRs must not be L&I ETFs or Crypto ETFs.
•The Securities and Exchange Commission (SEC) proposes expanding the underlying assets for DRs from common stocks in the Mekong sub-region to common stocks in ASEAN countries with a 15-day average market capitalization of at least 75,000 million baht.
•The Securities and Exchange Commission (SEC) proposes a Shelf issuer and Shelf filing process for DRs, allowing authorized issuers to offer DRs for one year.
•The Securities and Exchange Commission (SEC) restricts Thai ETFs that are Feeder funds or Fund of Funds from having investment policies focused on foreign L&I ETFs.
•The Securities and Exchange Commission (SEC) requires securities companies to determine Initial Margin (IM) for L&I ETFs based on the leverage of the product to reflect higher risk.
•The Securities and Exchange Commission (SEC) is accepting feedback on these draft notifications until December 8, 2026.

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Key Entities

Organization

Securities and Exchange Commission(สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์)ℹ️

The regulator proposing improvements to DR rules, Thai ETF investment in L&I ETFs, and margin loan regulations.

SEC(ก.ล.ต.)

The abbreviation for the Securities and Exchange Commission.

Securities Companies(บริษัทหลักทรัพย์)

Entities required to manage risk and determine Initial Margin for margin loans on L&I ETFs.

Place

ASEAN(อาเซียน)ℹ️

The group of countries whose common stocks are proposed as expanded underlying assets for DRs.