Thai stock exhange on track to demutualise in 2012

BANGKOK Feb 10 (Reuters) - The Stock Exchange of Thailand (SET) said on Thursday it was on track to demutualise and become a listed company by 2012, part of plan to cope with capital market liberalisation.

The Council of State, the government's legal agency, was considering details about the demutualisation plan for Southeast Asia's fourth-biggest bourse to list its shares in 2013, SET President Charamporn Jotikasthira told Reuters.

"The council is considering a capital market development plan, which should finish in the middle of this year. The demutualisation should definitely happen in 2012 and listing should be done in 2013. We are still on track," he said.

The move was part of the government's drive to develop the country's capital markets.

While several global exchanges are consolidating, Charamporn said chances were slim for the Thai exchange to merge with other bourses due to regulatory restrictions.

But Thai bourse has tied up with other Southeast Asian markets to boost competitiveness, he said.

"Thai laws do not allow us to consolidate," he said adding after the demutualisation, the market regulator would assess the situation and regulations to explore options to restructure.

Last weeek, stock exchanges in Malaysia, the Philippines, Singapore and Thailand announced a plan to set up trading links between their markets with the aim of having cross-border dealing in all their listed shares by the end of this year. [ID:nSGE71101M]

Late last year, the Thai Securities and Exchange Commission said it was working on plans to eliminate the market's monopoly and link trading systems with global markets.

Market capitalisation stands at $255 billion, ranking number four after Malaysia, Indonesia and Singapore. ($1 30.69 Baht) (Reporting by Saranya Suksomkij; Writing by Khettiya Jittapong; Editing by Jason Szep)