SET, ASCO, TBA, SEC, CMDF and ThaiBMA embark on DIF Web Portal

Editorial Staff

SET, ASCO, TBA, SEC, CMDF and ThaiBMA embark on DIF Web Portal for fully electronic end-to-end bond offerings

The Stock Exchange of Thailand (SET), the Association of Thai Securities Companies (ASCO), and the Thai Bankers' Association (TBA) collectively as a main operator, in collaboration with the Securities and Exchange Commission (SEC), the Capital Market Development Fund (CMDF), and the Thai Bond Market Association (ThaiBMA), have unveiled digital infrastructure for capital market services, starting from a web portal system for the country’s first fully-digitized corporate bond offerings in the primary market.

The end-to-end system covers the process of issuance, filing, subscription, payment, and delivery. This pilot project is participating in the SEC’s sandbox. It will increase efficiency and transparency in the services of the Thai capital market, cut down costs, and increase accessibility for both fundraisers and investors, while enhancing the regulatory efficiency and transforming the Thai capital market into a digital capital market to keep pace with the rapidly changing global trends.

SEC deputy secretary-general and acting secretary-General Thawatchai Pittayasophon said that SEC initiated digital infrastructure for capital market in late 2019 with the support from CDMF. The project has been included in the fourth Thai capital market development plan (2022-2027) concerning digital capital market development (Digital transformation). SEC is determined to develop DIF Web Portal into the complete digital infrastructure for the Thai capital market.

SET president Pakorn Peetathawatchai, as a representative of the main operator, said that DIF Web Portal is a service system for the end-to-end bond offerings in the primary market electronically. The process includes the settlement and delivery of debt instruments in scripless form. This innovative system has been financed by CMDF and is owned by CMDF Digital Infrastructure Co., Ltd. while ThaiBMA is the system operator for day-to-day operations.

ThaiBMA president Somjin Sornpaisarn, on behalf of the system operator, said that ThaiBMA, under DIF Web Portal project, plays a dual role as debt instrument registrar which is one of the association’s core missions and the project’s business operator.

DIF Web Portal utilizes advanced technology to connect with the digital bond offering transaction system conducted by all sectors involved, in an end-to-end manner, with the digital standard messages. This system has multiple benefits in boosting efficiency in transferring information conveniently, quickly and transparently, while reducing costs, eliminating paper usage, and minimizing redundant work processes. The data transmission is machine readable. Significantly, the infrastructure in the Thai capital market is taking shape and this helps increase the efficiency of the investment ecosystem, and support the development of new investment products in the future.

In May 2023, the first four issuers of bond issued in the system are consisted of (1) PTT pcl, (2) PTT Exploration and Production pcl, (3) Toyota Leasing (Thailand) Co., Ltd., and (4) Kasikornbank pcl for a total funding raised of over 6.6 billion baht (approx. USD 187 million).

The cooperation of all sectors has driven the development of DIF Web Portal to the completion of the first phase of the project. There are currently 16 participants in the sandbox. The project will continue to develop other types of investment processes and products.