History
Quick
Link
Link
Securities Finance Corporation (SFC)
Securities Finance Corporation (SFC) is a financial institution established to provide credit facilities to the securities company. It serves to support the development of securities and capital markets business by accepting securities as primary collateral to help facilitate securities business.
Currently, the countries where the SFC is established are:
Securities Finance Corporation (SFC)
During 1978-1979, the Thai financial market faced sever. The government Liquidity problems implemented a number of temporary measures to enhance liquidity for the stock therefore market. For example, the establishment of Thailand Capital Market Development Fund and the securities business solution fund. All parties agreed that in addition to short-term measures, there should be long-term measures to continuously develop the capital market and the specialized organization necessary for the development of capital markets should be established.
SFC in Thailand are ongoing until when it comes into The establishment of SFC in Thailand cuase force in the Securities and Exchange Act B.E. 2535. The securities business expanded widely. Securities trading volume continued to expand. Securities operators are needed sources of new funds to expand their business operations. Therefore, the government has clearly stated in Financial System Development Plan 1995-2000 to establish of SFC in Thailand.
SFC in Thailand are ongoing until when it comes into The establishment of SFC in Thailand cuase force in the Securities and Exchange Act B.E. 2535. The securities business expanded widely. Securities trading volume continued to expand. Securities operators are needed sources of new funds to expand their business operations. Therefore, the government has clearly stated in Financial System Development Plan 1995-2000 to establish of SFC in Thailand.
The establishment of TSFC
SFC in Thailand was established out of a strong push from both the public and private sectors. There are two motivating factors:
Separating the securities business from the finance business. After the SEC was established in 1992 to specifically supervise securities companies,
The government has separated the securities business from the finance business based on the idea that finance businesses should not raise deposits from the public for the use in securities business, which is very risky. When a securities company can not raise funding, finance company, Securities companies began to face problems with funding sources. The government therefore wants TSFC to be a source of funds for securities companies.
Funding sources that understand the securities business. During 1993, securities companies used large amounts of capital for margin loans.
Securities trading volume continued to expand. Securities companies need large amount of capital for settlement while borrowing money from banks using securities as collateral. The Association of Securities Companies on behalf of the Securities Group therefore requests cooperation from the government sector to establish a financial institution with knowledge and understanding of securities business, willing to accept securities as collateral, and ready to be a source of funds for securities companies.
These two factors were the driving force behind the successful
establishment of SFC in 1996 with the name of
establishment of SFC in 1996 with the name of
“ Thailand Securities Finance Company or TSFC Securities Company Limited “
By cooperation from both the public and private sectors. Its main operation is to carry out the mission of being a source of funds
and enhancing liquidity for securities companies and support the sustainable development of securities business.
and enhancing liquidity for securities companies and support the sustainable development of securities business.
