Thailand to allow funds to buy 'exotic' financial securities

Bangkok

THAILAND'S regulator plans to allow mutual funds to invest in riskier securities and attract funds from wealthy citizens investing abroad as they seek higher returns.

The Securities & Exchange Commission (SEC) will relax rules that forbid purchases of "exotic financial securities" such as junk bonds and other high-yielding assets, secretary general Rapee Sucharitakul said. The agency will also allow hedge funds and leveraged unit trusts to tap funds in the local market, he said.