Though there are both Thai and foreign investors in the Thai stock market in the form of institutional investors and individual investors, according to the laws, many SET-listed companies have limitations on foreign ownership (Foreign Limit). In 1997, when Thailand and much of the world encountered the financial crisis, it dramatically diminished the liquidity in the market. Some foreign investors would like to invest in companies registered in the SET but it was not possible because of the “Foreign Limit.” As a result, Thai NVDR Co., Ltd., was established in 2000 to stimulate investments and drive for a high degree of liquidity by being another choice of investment for foreign investors who are interested in Thai securities, especially those with foreign ownership restrictions.
Thai NVDR Co., Ltd., is responsible for issuing “non-voting depository receipts,” a new trading instrument initiated by SET to allow foreign investors to invest beyond the foreign ownership limit. Foreign investors holding NVDRs are eligible to receive financial benefits but they have no voting rights at company shareholder meetings (non-voting rights).
Source : Thailand Board of Investment 555
Tel : +66 2553 8111
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