NVDR

NVDR stands for Non-Voting Depository Receipt. In Thai, it is called a certificate representing benefits arising from Thai underlying securities, granting rights to benefits from the purchased shares just like owning shares in the stock market in every aspect  such as receiving dividends, capital gains, and rights to purchase additional shares. However, the difference between the rights of NVDR holders and ordinary shareholders is that NVDR holders do not have voting rights in shareholder meetings, as indicated by the term “Non-voting” Depository Receipt.

Currently, the Stock Exchange has revised trading regulations related to the certificate representing benefits arising from Thai underlying securities (“NVDR”) to improve the supervision of NVDR investments in line with the SEC’s updated guidelines on NVDR transaction services. These prohibit securities companies from accepting purchase orders, transfers, or exchanges of securities that would increase Thai investors’ holdings of NVDRs. This aligns with the purpose of NVDRs to promote foreign investors' ability to invest in listed company shares without restrictions related to foreign ownership limits (Foreign Limit), as follows:

• Securities companies are prohibited from placing NVDR purchase orders on behalf of Thai investors.
• Securities companies must implement measures to verify client purchase orders before placing any orders, allowing only foreign investors to purchase NVDRs.

The revised regulations will be effective from June 4, 2024. For more information, please seehere