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The Stock Exchange of Thailand (SET) improves post-trade procedures of non-voting depository receipts (NVDRs) to facilitate foreign investors and securities companies, aiming at tightening operating processes and costs of broker members.
From August 1, order adjustment will be allowed after settlement for securities traded over the last three months, rather than the current limit of three days after trading. In addition, fees for order adjustment will be cancelled. This procedure is reserved for post-trade NVDRs between broker members and the SET.
“The improvement will make NVDRs trading more convenient and reduce limitations and obstacles encountered. This will cut operating costs of securities firms as well as custodian banks,” said SET President Charamporn Jotikasthira.
NVDRs help eliminate barriers for foreign institutions wishing to investing in Thailand’s listed firms, but which are prevented from doing so directly for various reasons. NVDR holders receive financial benefits, such as dividends, right issues and warrants, as if they had invested in the shares themselves but will, in general, have no voting rights.
