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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
2015, 35 SIPF members from securities companies (2014:
33 SIPF members).
The assets of SIPF consist of:
1) the initial fund from the SET of Baht 300 million;
2) the cumulative membership entrance fees and monthly
fees collected from the members; and
3) the future benefits generated from investments in
the SIPF.
SIPF will protect the investors’ assets which are in the
custody of the securities brokers who are members of the SIPF. In
the event that the members of the SIPF fail to return the assets
to investors, each investor shall be compensated by the SIPF for
the related damages at the actual cost, but not exceeding
Baht 1 million per SIPF member, in the following cases:
1) if any SIPF member is in receivership under the
Bankruptcy Act or
2) if there are disputes concerning the purchase or sale
of securities listed on the SET between investors and any SIPF
member, and the arbitrator’s award is that the SIPF member
shall return the assets to investors, but the SIPF member
violates the award.
The protection will not include any losses from securities
trading regardless of who makes the investment decision.