SEC revises Vayuphak Mutual Fund criteria to support general investor offerings

The Securities and Exchange Commission (SEC) has announced an adjustment to the Vayuphak Mutual Fund's criteria to support general investor offerings in order to promote savings and investment and drive the Thai capital market. The SEC stated that according to the cabinet meeting on August 13, 2024, it resolved to acknowledge the offering of investment units of Vayuphak Fund to general investors as proposed by the Ministry of Finance in order to promote long-term savings and investment for the public and to develop the country's capital market by creating capital flows into the Stock Exchange of Thailand (SET), which will help reduce reliance on foreign investment. Vayuphak Fund plans to offer investment units to general investors (Unit Holder A) of approximately 100,000-150,000 million baht and will list such investment units on the Stock Exchange. Unit Holder A will receive returns in the form of dividends no less than the minimum return rate and no more than the maximum return ceiling as specified throu ghout the 10-year period. In addition, in the event that the net asset value of the fund decreases, Unit Holder A has the right to receive returns before Unit Holder B (Ministry of Finance and government investors). The SEC therefore revised the criteria used for Vayuphak Mutual Fund, which are as follows: (1) Permission to set the selling price of Investment Units A. according to the par value (10 baht per unit) in addition to sales based on the asset value per unit; (2) Specifically setting the investment ratio criteria for Vayuphak Mutual Fund and extending the grace period for investment exceeding the investment ratio criteria that are not the result of additional investment to 10 years from the date on which Investment Unit A. is first traded on the Stock Exchange; and (3) Permission for the Ministry of Finance to pay for the purchase of investment units in the form of securities or other assets (pay-in-kind) as requested by Vayuphak Mutual Fund Office and investment management company. The announcemen t regarding the adjustment of Vayuphak Mutual Fund criteria will be effective from September 5, 2024. Source: Thai News Agency