Participants in Thai government securities market
Participants in Thai government securities market classified by roles
1. Issuer : An entity that issues a financial instrument which represents a legal obligation between a creditor (buyer or investor) and a debtor (issuer). Issuers of government securities include the Ministry of Finance, the Bank of Thailand, Financial Institutions Development Fund, and state-owned enterprises.
2. Issuing agent / Selling agent : A financial institution appointed by the issuer to conduct the issuance/ sale of debt securities under mutual agreement. The Bank of Thailand acts as an issuing agent of government securities, while some commercial banks and specialized financial institutions are authorized as selling agent.
3. Bondholder : An owner of government securities, including purchaser, transferee, and winning bidder. Bondholders can be individuals, juristic persons or financial institutions.
4. Custodian / Depository : A financial institution that holds securities on behalf of bondholders for safekeeping. Some commercial banks serve as custodian, while Thailand Securities Depository Co. , Ltd. (TSD) plays the role of central depository for scripless securities.
5. Registrar and Paying Agent : An entity in charge of keeping records and making payment of interest and principal to bondholders. The Bank of Thailand serves as registrar and paying agent for government securities.
6. National Interbank Transaction Management and Exchange Co.Ltd. (NITMX) : A company jointly established by Thai commercial banks to process inter-bank payment transactions across member banks through electronic media both domestically and overseas. The Bank of Thailand transfers bond interest and principal to the bondholders through NITMX's Bulk Payment System.
7. Entities accepting securities as collateral : Government agencies, financial institutions and individuals. Examples include court, Metropolitan Electricity Authority, Provincial Electricity Authority, commercial banks, specialized financial institutions and individuals. Collateral can be used as bail to court, for electricity consumption, and for loan agreement.
8. Government authority : Government agencies that are legally authorized to verify ownership of bond, or seize bond. These agencies are, for example, Revenue Department, court and Legal Execution Department.
For further inquiries
Bond Management Team