The SEC, with the approval of the Capital Market Supervisory Board during its Meeting No. 11/2566 on 20 November 2023, views that – given the original intent of the introduction of NVDR is to support foreign investors’ participation in the Thai stock market without being subject to the foreign limit – it is appropriate to amend the regulations related to provision of NVDR transaction services by securities companies to prevent the misuse of such securities as a tool to evade compliance with relevant regulations such as the compulsory reporting on acquisition and disposition of securities, or to conceal shareholding information, which could lead to inappropriate behaviors in the capital market or a lack of information that may affect investment decision making of investors. The SEC is therefore conducting this public hearing on the proposed amendments to the relevant regulations, with the essences summarized as follows:  

(1) Prohibiting local securities companies from accepting orders of purchase, transfer or exchange of securities that would result in Thai investors gaining more possessions of NVDR;  

(2) In the case where a local securities company has a foreign securities company as a client, the local securities company would be required to notify the foreign client not to accept purchase orders, transfers or exchanges of securities that would result in Thai investors holding more NVDR securities. Additionally, the local securities company would be required to inform the foreign client to disclose its client information on transactions related to NVDR to ensure that the local securities company is aware of the true identity of the clients and their beneficiaries involved in NVDR transactions who are of Thai nationality.        

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=969. Stakeholders and interested parties are welcome to submit comments and suggestions through the website or email: gritchanut@sec.or.th, laksika@sec.or.th or anudporn@sec.or.th. The public hearing ends on 6 February 2024.

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Remark: 

The notifications concerning the relevant regulations are:  

(1) Notification of the Capital Market Supervisory Board No. Tor Jor. 31/2552 Re: Offering for Sale of Non-Voting Depository Receipts by Subsidiary of the Stock Exchange of Thailand, dated 3 August 2009: https://publish.sec.or.th/nrs/4769p_r.pdf 

(2) Notification of the Capital Market Supervisory Board No. Tor Thor. 35/2556 Re: Standard Conduct of Business, Management Arrangement, Operating Systems, and Providing Services to Clients of Securities Companies and Derivatives Intermediaries, dated 6 September 2013:  https://publish.sec.or.th/nrs/6324p_r.pdf