SET-listed AEC Securities has clarified its failure to maintain net capital as required by the Securities and Exchange Commission (SEC), attributing the shortage to the calculation of its debenture holding. The calculations of net capital and net capital ratio require listed companies to include the large exposure risk (LER) second method, as per the SEC's requirement. "The company needs to calculate the LER second method for all these debentures, which have exceeded the company's net capital for risk to be adjusted to as high as 100%," said AEC in its statement. As the credit rating for some companies, such as THAI, has been downgraded by several notches, this affects the calculation process. AEC engages in securities brokerage, trading and underwriting as well as investment advisory and is a sales and derivatives agent.

Source: Bangkok Post May 27, 2020 23:37 UTC