The group calling itself Pro-Thaksin Anti-Dictatorship Group consists of former party members, most from the Northeast.

Former Roi Et member of Parliament Nirand Namuang-rak said people outside of politics had joined, too.

He will hold a news conference today to introduce the new group. "After that, we will join the PTV rally at Sanam Luang."

The banned satellite-television station began a daily protest last week and vows to remain at Sanam Luang until the junta hands over power. The rally has failed to attract widespread support.

Nirand said the group was formed to cater to the demands of people suffering under the Surayud government and the Council for National Security (CNS).

The group will collect signatures of those still supporting the former prime minister, he said. He is optimistic of getting 14 million people to sign.

Both the Cabinet and CNS agreed to officially lift the ban yesterday. The Council for Democratic Reform imposed it immediately after the September coup. It became the CNS.

Prime Minister Surayud Chulanont said CNS chairman Sonthi Boonyaratglin attended yesterday's Cabinet meeting. The ending of the ban is effective immediately.

The same order containing the activity ban included the suspension of the registration of political parties. The Council of State will now study that over the next two weeks.

Surayud said it needed an act of Parliament to be amended. The Cabinet might discuss such legislation next week ahead of sending it to the National Legislative Assembly. He will ask the assembly to expedite endorsement.

Right now permission for political activities extends to existing parties only, not unregistered parties. Therefore, former members of the dissolved Thai Rak Thai Party remain excluded.

The government cannot override the Constitution Tribunal's ruling which revoked the voting rights of 111 former Thai Rak Thai executives, he said.

Surayud did not think loosening restrictions would backfire and see politicians attacking the government and the CNS. It will open political participation for the people, he said.

Nevertheless, Government Spokesman Yongyuth Mayalarp said the meeting did not discuss lifting or amending post-coup order No 27.

Sonthi said there would not be any amendment at the moment. Loosened political restrictions will relieve tension and improve the political climate and at the same time show the government and the CNS are sincere about holding elections and not clinging to power, he said.

Meanwhile, Prime Minister's Office Minister Thirapat Serirangsan said amending No 27 should not take longer than three weeks.

He said the government lifted the activity ban to prove to international critics Thailand was on the road back to democracy. At the same time it is maintaining national security.

A Bangkok University Bangkok Poll released yesterday showed 58.8 per cent of 1,032 respondents agreed with the activity relaxation and party registration permission. The survey was conducted on Saturday to Sunday in and around Bangkok.

No 27 includes an amendment to No 15 declaring No 15 effective until a Cabinet resolution or law states otherwise.

It added the electoral-process-ban penalties for executives of dissolved political parties.

It stated any politician banned from the electoral process before September last year remained banned.