The parties are members of Thailand's six-party ruling coalition.
The Chart Thai is a significant member with 39 seats, while the Matchima Thipathaya has seven.
Dissolving them would not necessarily jeopardise the ruling coalition, but it would erode its position in Parliament, making it more vulnerable to defections and no-confidence votes.
The ruling People Power Party (PPP) emerged from the December 2007 election as the single largest party with 232 seats - nine short of a majority in the 480-seat Parliament.
It formed a six-party coalition giving it 315 seats - a comfortable majority. The Democrat Party was left as the sole opposition party with 165 seats.
Much depends on whether the EC accepts the recommendation, concurs and forwards it to the Constitutional Court - and if the court then concurs.
The EC's four-member panel, in a unanimous decision, said the two parties were linked to electoral fraud by party executives in the December 2007 election.
But reports in local media said two EC members, Mr Sumeth Upanisakorn and Mr Somchai Juengprasert, had said there was no clear legal basis to dissolve the two parties.
The PPP, comprising loyalists of former prime minister Thaksin Shinawatra, is not popular among sections of the Bangkok military-royalist elite which supported the 2006 coup which forced Thaksin from power.
Dissolution of parties and the consequent collapse of the coalition is seen as one way to get rid of the government.
But any scenario spawned by dissolution would also depend on the details of the ruling.
Members of Parliament from a dissolved party may well be able to switch to other parties, keeping their seats and thus maintaining the integrity of the coalition.
NIRMAL GHOSH