The Securities and Exchange Commission (SEC) in Thailand is planning to ban Thai investors from trading non-voting depository receipts (NVDRs) in order to prevent fraud in the capital market.
- The Securities and Exchange Commission (SEC) in Thailand is planning to ban Thai investors from trading non-voting depository receipts (NVDRs) to prevent fraudulent activities in the capital market.
- The ban on Thai investors trading NVDRs comes in the wake of the More Return Plc (MORE) case, which involved the misuse of NVDRs.
- The SEC is considering changing the settlement period for security transactions, potentially reducing it from two business days to one, to make the Thai market more efficient.
This decision comes in response to the More Return Plc (MORE) case, where NVDRs were misused. Foreign investors will still be allowed to trade using NVDRs, but Thai investors will be restricted.
While NVDRs were introduced with the aim of encouraging foreign investment, Thai investors were not restricted from using this channel. However, the majority of Thai investors preferred trading via the SET main board, as it allowed them to trade without any limitations on the number of shares.
The SEC is also considering shortening the settlement period for security transactions. Additionally, the SEC is seeking more authority to efficiently regulate the market and streamline the legal process for investigations.