# Thai SEC to ramp up supervision of high-yield bonds following defaults and accounting scandal

- Link: https://www.thailand-business-news.com/crime/123179-thai-sec-to-ramp-up-supervision-of-high-yield-bonds-following-defaults-and-accounting-scandal
- Published: 2024-01-22T15:02:22+07:00
- Author: Olivier Languepin

The Securities and Exchange Commission in Thailand is increasing its supervision
of high-yield bonds following recent defaults and a major accounting scandal.

 * The Securities and Exchange Commission in Thailand is increasing supervision 
   of high-yield bonds to enhance payment security and investor confidence following
   recent defaults and a major accounting scandal.
 * The SEC is now proactively reaching out to companies at the first sign of potential
   payment issues and plans to implement stricter monitoring and disclosure requirements
   for low-rated or unrated bond issuers.
 * The decline in high-yield corporate bond sales in Thailand, driven by concerns
   over rising defaults, has prompted the SEC to tighten monitoring efforts and 
   take steps to prevent further surprises in the market.

The SEC will pay more attention to bonds of companies with no credit rating or low
grades, requiring more disclosure on financial data. This increased monitoring comes
after a 19% decline in total domestic debt sales in 2023, with high-yield corporate
bond sales being a key factor.

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The market for speculative debt has been rocked by payment delays and corporate 
scandals, leading to a decline in corporate bond sales.

[The year 2023 has been a turbulent one](https://www.thailand-business-news.com/set/119564-another-year-of-scandals-scams-and-wild-moves-for-the-thai-stock-exchange)
for the Thai stock market, as several scandals, defaults and volatility have shaken
investor confidence and prompted regulatory reforms.

Excessive volatility in some shares, including the nation’s most valuable company,
and an accounting scandal that led to a bond default at a listed electric cables
maker are among the latest events that have shaken investor confidence.

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Stark Corporation, a wire and cable manufacturer, has been involved in a major financial
scandal. Executives and subsidiaries of the company are accused of doctoring financial
statements, engaging in fraud, and money laundering.

The fraud has resulted in an estimated financial damage of 14.78 billion baht and
has affected nearly 5,000 investors. The scandal has raised concerns about the competence
of auditors and the slow response of law enforcement authorities, undermining investor
confidence in the market governance.