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140 Annual Report 2012
22. Fund balances
Details of fund balances are as follows:
Securities Clearing Reserve Fund
In 1997, the Board of Governors of the SET approved an appropriation of general funds of Baht 2,000 million to the Securities
Clearing Reserve Fund, which is operated by a subsidiary of the SET, in order to resolve liquidity risk in the event of default on clearing
and settlement from securities trading on the SET.
Clearing and Settlement of Derivatives Market Reserve Fund
In 2004, the Board of Governors of the SET approved an appropriation of general funds of Baht 300 million to the Clearing and
Settlement of Derivatives Market Reserve Fund in order to assure contingent losses from the clearing and settlement system of futures
contracts at Thailand Clearing House Co., Ltd.
Indemnity Fund
In 1993 and 2002, the Board of Governors of the SET approved appropriations of general funds totalling Baht 100 million to the
Indemnity Fund in order to assist and assure the Board of Governors of the SET and those appointed assignees on matters requiring
consideration and decisions which may affect or cause damages to other parties.
SET Building Construction Fund
In 1992, the Board of Governors of the SET approved an appropriation of general funds totalling Baht 580 million for the
construction of SET buildings. Construction of the office buildings was completed in 1998. The remaining fund balance of Baht 246.3
million is reserved for further construction of a parking building.
In 2008, the Board of Governors of the SET approved the construction of the car park building from the above mentioned
remaining fund balance. The total construction cost paid for the year ended 31 December 2012 was Baht 0.34 million (2011: Baht
7.32 million).
As at 31 December 2012, SET Building Construction Fund had balance Baht 7.77 million (2011: Baht 8.11 million)
Staff Welfare Fund
In 1997 and 2004, the Board of Governors of the SET approved appropriations of general funds was Baht 75 million to the Staff
Welfare Fund. All benefits earned from this fund are retained in the fund.
Securities Investor Protection Fund
In 2004, the Board of Governors of the SET approved an appropriation of Baht 300 million from broker seat admission fees as an
initial fund for the establishment of the Securities Investor Protection Fund (SIPF).
The SIPF was formally established under SIPF regulations on 1 October 2004. The objective of the fund is to protect and build
investor confidence in trading listed securities on the SET through the members of the SIPF. As at 31 December 2012, 32 securities
companies were SIPF members (2011: 32 companies).
The assets of SIPF consist of:
1) the initial fund from the SET of Baht 300 million, which was appropriated from broker seat admission fees;
2) the cumulative membership entrance fees and monthly fees collected from the members (commencing from 1 January
2005) of up to Baht 200 million; and
3) the future benefits generated from investments in the SIPF.