BANGKOK, 30 January 2014 The Securities and Exchange Commission (SEC) on Wednesday asked asset management companies to increase to twice daily their reporting of money flowing in and out of mutual funds, in preparation for any abnormal trade situation in the stock market that could arise from the political situation turning violent.
In the letter to the asset management companies, the SEC asked the former to closely follow investment decisions by investors and to increase the reporting of fund flows to twice daily, and to have those asset management companies prepare a sufficient amount of liquidity in case of massive withdrawals of investment.
Wana Phunphon, managing director of UOB Asset Management (Thailand), on Wednesday admitted that in the aftermath of the seizing of state offices and blocking of roads by the People’s Democratic Reform Committee, asset management companies had received a letter from the SEC asking them to prepare measures to deal with panic selling by investors. He added that the stock market is sensitive to various developments, including political events, and that in the past, political violence had prompted investors to dispose of a large amount of shares in their portfolios.
