Bank of Thailand Confirms Shareholding Regulations: Over 5% Requires Reporting of Objectives and Plans

Somchai Lertlapawasin, Assistant Governor of Financial Institution Supervision at the Bank of Thailand (BOT), revealed that Gulf Development Public Company Limited reported its 10.03% shareholding in Kasikorn Bank, prompting scrutiny of its ownership objectives. The BOT's 10% shareholding regulation has been in effect since 2551 (2008) and is not new. While the Securities and Exchange Commission (SEC) calculates shareholding by excluding treasury stocks, the BOT calculates based on total issued shares. Gulf's current shareholding is actually 9.96%. Under BOT regulations, shareholders exceeding 5% must report their ownership objectives and plans. Large shareholders are prohibited from making special transactions or receiving preferential treatment beyond normal customer conditions. The bank must prevent potential conflicts of interest, with credit limits strictly controlled. Any transactions must be approved unanimously by the bank's board and treated like transactions with regular customers. Corporate governance is crucial, especially considering past financial crises. Shareholdings over 10% require additional reporting to prevent undue influence over financial institutions.