Investor's Benefits

Foreigner’s Guidelines

 
Clients should be aware of the restrictions on foreign ownership of Thai companies. Foreign shareholding limits apply to every stock listed on the Stock Exchange of Thailand. Most listed companies limit foreign ownership to a maximum of 49%, except those in the banking and finance sector which generally permits only a 25% foreign holding.
   
To ensure you are entitled to receive financial benefits arising from investing in Thai Stocks Market, clients are advised to hold stocks registered according to their “Residential Status”:-
   
 -Thais to hold “local” shares.
 -Foreigners to hold either “foreign” shares or Non-Voting Depository Receipt (NDVR).
   
Foreigners who hold foreign shares will be eligible for dividends, right issues & warrants and voting rights. In the case that they hold NVDRs, they will be entitled to receive dividends, right issues and warrants only. Voting right is not applicable for NVDR holders.
   
Share Conversion
 
Please note that foreign shares of some stocks might not be available due to the lack of liquidity. Clients have the option to buy local shares and later inform the company to convert them to foreign shares. Conversion can be processed only when there is room available in foreign board.
   
Depending on liquidity, clients holding foreign shares have the option to sell in the local board, after such shares are converted from foreign to local.
   
Share Conversion Request will be processed only if the shares have been settled (clean stocks). For any share conversion, it will take one working day after the receipt of your requisition. The conversion fee is Bt 50.- per application for each listed company.
   
For more information on share conversion, please contact Client Service Center at etrading@globlex.co.th or tel. (66) 2 672-5959.
   
Investor’s Benefits
   
When Globlex is acting as custodian, we will inform the securities registrar, Thailand Securities Depository Co., Ltd. (TSD), the identities of shareholders as at the book closing date. Consequently, customers will be entitled to receive the following:-
   
A.Right Issue
           After the book closing date, the TSD will directly submit the notification of subscription along with the subscription form to the shareholders to the address given in your account opening form. The shareholder must complete all forms; attach a signed copy of your identification card or passport together with a cheque and return all documents directly to that listed company within the date specified.
  
B.Dividend
 After the dividend payment date, the TSD will mail a dividend cheque to the shareholders at the address given in your account opening form. Please note that dividend income is subject to 10% withholding tax at source.
  
 According to the Stock Exchange of Thailand’s regulations, the dividend cheque will be paid in Thai Baht only. For this reason, overseas clients are recommended to obtain a local bank account with any of the major Thai commercial banks in order to cash the cheque before remitting out of Thailand. As a result, foreigners who do not obtain any local bank