Thailand’s central bank, the Bank of Thailand (BOT), allows short selling by commercial and retail banks, once they apply for and receive a license from the Securities and Exchange Commission (SEC) to borrow and lend securities. Eligible securities for short selling are defined as debt instruments, equity instruments, and investment trusts under purview of the Thailand Securities Depository Limited.

As a third party agent or broker, commercial banks can trade for individuals, juristic persons, and institutional investors. They may carry out securities borrowing or lending with institutional investors only. Securities lending or acting as agent for securities lending to nonresidents and any transactions with a party which result to lending THB-denominated liquidity to nonresidents are not allowed.

Retail banks can short sell only for hedging risks or for managing risk of their own accounts, and only with those licensed to borrow or lend securities under securities and exchange laws or with the Thailand Securities Depository Company Limited.

Detailed BOT and Stock Exchange of Thailand’s (SET) rules for short selling, as well as regulations for listed securities, are linked below. The SET’s Bond Electronic Exchange (BEX) follows SET rules for short selling. Only securities specified by the SET are available for short selling.