# SEC to hold hearing on proposed updates to short selling and securities lending rules

- Link: https://www.thailand-business-news.com/markets/279537-sec-to-hold-hearing-on-proposed-updates-to-short-selling-and-securities-lending-rules
- Published: 2026-01-16T15:15:23+07:00
- Author: Abhishek Prakash

**The SEC seeks public input on proposed amendments to short selling and securities
borrowing rules, aiming for efficiency and enhanced oversight. Key changes include
clarifying definitions and improving risk management processes.**

The SEC is seeking public comments on proposed amendments to short selling and securities
borrowing and lending rules to enhance regulatory oversight and efficiency in the
current capital market context. The SEC’s proposals are based on public hearings,
ongoing discussions with stakeholders, and feedback that largely supports the principles
while suggesting refinements to better align with brokerage practices and lessen
burdens on businesses.

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Key proposed amendments include:

       (1) Clarifying the definition of short selling transactions;

       (2) Enhancing the efficiency of short selling services, such as Know Your
Customer (KYC) procedures for inter-broker* clients, and short selling order acceptance
and transmission process;

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       (3) Requiring clients to provide assurance that clients have borrowed or 
located
a source of securities borrowing before placing short selling orders. Moreover,
the SEC proposes to remove the requirement for brokers to include a clause in the
service agreement requiring clients to pay compensation if brokers are penalized
due to the client’s fault.**

In addition, the SEC proposes to improve the SBL service rules for more clarity 
by emphasizing that securities companies must have effective risk management systems
and only lend or confirm the availability of securities for lending when sufficient
securities are actually held. This measure aims to prevent risks arising from lending
or confirming lending more than available securities.

The consultation paper is available at on the SEC website at [https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1136](https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1136)
and the legal hub at [https://law.go.th/listeningDetail?survey_id=NjQxM0RHQV9MQVdfRlJPTlRFTkQ=](https://law.go.th/listeningDetail?survey_id=NjQxM0RHQV9MQVdfRlJPTlRFTkQ=).
Stakeholders and interested parties are welcome to submit comments and suggestions
via the SEC website or by email at laksika@sec.or.th, gritchanut@sec.or.th, phachisa@
sec.or.th or anudporn@sec.or.th. The public hearing ends on 11 February 2026.

**Source** : [SEC public hearing on proposed amendments to short selling and securities borrowing and lending rules to align with current capital market conditions.](https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=12432&rand=113627)