Deunden, the TDRI's economic management director, said there were problems in probing who nominees were because the Securities and Exchange Commission had no authority to investigate who the ultimate shareholders of the companies in question were.

However, she said this problem was common in many developing countries, not only Thailand.

She said government policy failed to encourage good corporate governance because it was an abstract subject.

She said she would like the government to pay more attention to this issue because it was a major factor in encouraging foreign investment in the Thai capital market.

Meanwhile, Sopawadee Lertmanaschai, managing director of Thailand Securities Depository Co Ltd, said the investigation into whether Kularb Kaew was a nominee company owned by foreign investors that was set up with the aim of buying Shin Corporation, was part of a normal process.

This, she claimed, would show that the Thai stock market was transparent and had good corporate governance.

Siriporn Chanjindamanee, The Nation