Bangkok, 4 February 2022 – The Securities and Exchange Commission (SEC) has approved the draft regulations and the Notification of the Stock Exchange of Thailand (SET) regarding Amendment to the Regulations on Depository Receipts (DR) for which full unit purchase is not required (Fractional DR (DRx)) to promote a wide variety of new products with the underlying of foreign securities, and to help investors diversify their portfolio in the foreign market more conveniently with a small sum of investment money.
SEC Secretary-General Ruenvadee Suwanmongkol said: “The SEC Board Meeting No. 2/2565 held on 3 February 2022 has passed a resolution approving the draft regulations and the Notification of the Stock Exchange of Thailand regarding Amendment to the Regulations on Depository Receipts to allow DR to be bought in decimal point or Fractional DR (DRx).* The DR is a financial product linked to a foreign counterpart (cross-border product).”
The SET has developed a new trading platform to support DR trading with the underlying in the Asia and Americas time zone. The platform can also support the sending of trading orders at the amount of decimal units of DR or based on the amount of money. This will provide more convenience for general investors to diversify their investment in foreign countries with a little sum of investment money or in fractional units. The system also has a mechanism controlling the fluctuation of the selling price of DRx to ensure that the market will remain orderly in terms of trading.
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Remark:
*Fractional DR means the sending of depository receipts in decimal point without the need to buy them in full unit amount. This, however, excludes the ratio of DR to the underlying securities and does not necessarily mean 1:1 ratio.