An NVDR, or non-voting depository receipt, is a new trading instrument issued by Thai NVDR. It is a valid security as specified by SEC and is automatically regarded as a listed security by SET.
Trading NVDRs will be similar to trading other securities on the Stock Exchange of Thailand. Thus, the investors can apply the same trading procedure.
The main purpose of NVDRs is to stimulate trading activities in the Thai stock market. It is due to the fact that foreign investors who are interested in making investment in these companies may be preventedfrom doing so because of these foreign ownership restrictions regulated under Thai law. Thus, NVDRs will be alternative option for the investment of foreign investors. By investing in NVDRs, investors receive the same financial benefits (i.e., dividends, right issues or warrants), as those who invest directly in a company's ordinary shares. The only difference between investing in NVDR and company shares is in regard to voting. Unlike ordinary shareholders, NVDR holders cannot be involved in company decision-making. Both Thai and foreign investors can invest in NVDRs.
Underlying securities may be:
- Ordinary shares
- Preferred shares
- Transferable Subscription Rights (TSR)