./.WORLD TRADE
ORGANIZATIONS/C/N/91
18 December 1998
(98-5106)
Council for Trade in Services Original:  English
NOTIFICATION PURSUANT TO ARTICLE III.3 OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of Thailand.
____________
1. Member notifying:
Thailand
2. Notification under:
Article III, paragraph 3, of the General Agreement on Trade in Services.
3. Date of entry into force:
1 June 1998
Duration
Indefinite
4. Agency responsible for implementation  and enforcement of the measures:
Ministry of Commerce and Securities and Exchange Commission
5. Description of the measures:
Measures
Royal Decree Permitting Aliens to undertake Securities Brokerage Business under Annex A
of the Announcement of the National Executive Council No. 281 dated 24 November
B.E. 2515 (1972), B.E. 2541 (1998).
Rationale and Essence
The reason for the promulgation of this Royal Decree is that, at present, aliens are able to
make investment in juristic persons who are undertaking finance business under the law
relating to finance business, securities business and credit foncier business in excess of 50 per
cent of that company's capital.  However, many juristic persons who are undertaking financebusiness may also, at the same time, undertake securities business under securities law.  In
addition, where an alien has entered into a joint venture with the juristic person who isS/C/N/91
Page 2
undertaking securities business, such juristic person will become an alien, and therefore, be
prohibited from undertaking a certain type of securities business.  In order to be consistent
with the law relating to finance business, securities business, and credit foncier business, and
to promote the capital inflow from foreign coun tries, it is deemed appropriate to allow the
juristic person who is an alien to under a certain type of securities business under stipulatedconditions.
Description
The summary of the amendments are as follows:  The Royal Decree allows aliens to seek
permission to hold up to 100 per cent of shares in a Thai securities company for a period of
10 years.  After such period, aliens are not required to dilute their shareholdings but are notallowed to increase their investments unless it is a purchase of existing shares from another
alien shareholder.  In applying for the permission, aliens have to meet the following criteria.
(a) Aliens have brought in foreign capital of not less than 500 million baht either to buy
shares from existing shareholders of the secu rities company or to invest in the newly
issued shares of the securities company or to invest in government or state enterprise
bonds.  Such capital will include fund that has been remitted to the securities
company within the period of one year prior to the date of applying for permission.
In addition, the capital must also be maintained in Thailand for at least 3 years.
(b) Managing director and executive directors who are aliens have to stay in Thailand for
not less than 60 days per year, unless otherwise have obtained a waiver, but still have
to stay in Thailand for not less than 30 days per year.
6. Members affected:
None
7. The texts are available from:
Ministry of Commerce
Department of Commercial Registration
Bangkok
Telephone: +(662) 225 5064
Securities and Exchange Commission
Market Intermediaries Supervision Department
Bangkok 10330
Telephone: +(662) 252 3223  Ext. 1213
Telefax: +(662) 256 7737
__________