In a bold move to fortify the integrity and transparency of its financial markets, the Stock Exchange of Thailand (SET) is set to incorporate artificial intelligence (AI) tools to enhance the monitoring and oversight of listed firms. This initiative comes in response to mounting instances of corporate fraud that have threatened investor confidence and the overall market stability in Thailand.
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The introduction of AI into financial oversight is expected to revolutionize the way the SET identifies and responds to irregular trading activities. Asadej Kongsiri, the President of the Stock Exchange of Thailand, highlighted that AI will be pivotal in detecting unusual share price movements and trading patterns swiftly. This proactive approach aims to issue timely alerts to investors, thereby curbing the delay in enforcement actions that has previously eroded trust in the Thai stock market.
"AI will certainly ease the supervision staff’s workload and deliver faster warnings," Kongsiri stated. The exchange has been overwhelmed with up to 300 daily news and reports concerning potential corporate misdemeanors, which AI can efficiently sift through to pinpoint genuine cases requiring intervention.
The decision to integrate AI comes on the heels of several high-profile fraud investigations involving major Thai corporations. These scandals have not only marred the reputation of the affected companies but have also adversely impacted the country's benchmark stock index, which continues to trail behind its Southeast Asian counterparts.
In addition to fraud detection, the SET's strategic plan involves bolstering the value and appeal of listed companies. Over the next three years, the exchange intends to roll out programs offering consultation and advice to these firms, aiming to optimize their operations and investor communications. This initiative seeks to elevate shareholder returns and enhance company valuations.
Moreover, the SET is exploring the promotion of alternative investment avenues such as bonds and carbon credits. These measures are designed to provide investors with a diversified portfolio, potentially mitigating risks associated with the volatility witnessed in the stock market.
The foray into AI-driven oversight reflects a broader trend in the global financial sector, where technology is increasingly harnessed to ensure market stability and protect investor interests. By embracing such cutting-edge solutions, the Stock Exchange of Thailand is positioning itself at the forefront of financial innovation, striving to create a more secure and efficient trading environment.
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