An NVDR or Non-Voting Depository Receipt is a new trading instrument issued by the Thai NVDR Company Limited, a subsidiary wholly owned by The Stock Exchange of Thailand (SET). The NVDR is a security as specified by the SEC and is automatically regarded as a listed security in the SET.
The main purpose of the NVDR is not only to stimulate trading activity in the Thai stock market, but also to help eliminate foreign investment barriers, such as the foreign investment limits and the impediments for institutional investors who previously could not trade in the existing Thai Trust Fund. By investing in NVDRs, investors will receive all financial benefits; i.e., dividends, right issues or warrants, as if they had invested in a company's ordinary shares. The only difference between investing in the NVDR and the company's shares is the voting right. Unlike ordinary shareholders, NVDR holders cannot be involved in company decision making. Additionally, although the NVDR is designed mainly to ease foreign investment barriers, the SET does not prohibit Thai investors from trading this instrument.
Although the NVDR is designed mainly to ease foreign investment barriers, the SET does not prohibit Thai investors from trading this instrument. Therefore, all types of investors are allowed to trade NVDRs:
Local individual investors
Local institutional investors
Foreign individual investors
Foreign institutional investors
To eliminate foreign investment barriers, such as the foreign investment limits and the impediments for institutional investors who previously could not trade in the existing Thai Trust Fund.
Investors will receive all financial benefits; i.e. dividends, right issues and other benefits associated with or arising out of the shares except the voting rights.
The trading procedure is similar to the procedure for other listed securities. Investors wishing to trade the NVDR for any security can send their requests during normal trading hours via their brokers by specifying their trading orders to be the NVDR type.
For Internet Trading account, NVDR will be displayed with "-R" suffix to the normal stock code on your "Trading Portfolio"
Quotes for NVDRs will be the same as for local shares. Therefore, the local share price on Real Time Quote is the price of the NVDR.
Same as normal trading, Internet trading accounts are subject to a charge of 0.20% of value traded (minimum charge of 50 baht per day).
From Securities to NVDRs
In general, if investors wish to convert their securities on hand into NVDRs, they must record Put-through transactions (selling the stock and buying the NVDR) in the SET. However, during the first three months of NVDR implementation, the SET will allow stockholders to convert current common and preferred shares into NVDRs through the Thai NVDR Company Limited without trading via the Put-through system at the Stock Exchange of Thailand.
From NVDRs to Securities
Any NVDR holder who needs to change his holding position from NVDRs to securities, must process the transaction via the Put-through system of the Stock Exchange of Thailand.
