The Stock Exchange of Thailand (SET) has said that it will allow securities in the SET100 Index to be sold short, effective from 1 January 2011, onwards.

According to the stock exchange, this should provide investors with a better tool to manage their risks from stock price movement.

Previously, short-selling could be done only with the securities in the SET50 Index.

SET chief marketing officer Pakorn Peetathawatchai said short-selling has become a widely-used, effective tool for managing risks in portfolio investment. Enlarging the scope of securities in the SET100 Index to be available for short-selling should thus provide investors more investment alternatives and risk management tools.

"Securities in the SET50 Index, exchange-traded fund (ETF) units, and ETF-linked funds will remain available for short-selling as ever," Peetathawatchai added.