NVDR : Non-Voting Depository Receipt What is NVDR? An NVDR or Non-Voting Depository Receipt is a new trading instrument issued by the Thai NVDR Company Limited, a subsidiary wholly owned by the Stock Exchange of Thailand (SET). NVDRs are automatically regarded as listed securities in the SET. Benefits from investing in NVDR Foreign investors can invest in common stocks that are listed in The Stock Exchange of Thailand without the restriction of foreign limit. It eliminates foreign investment barriers, such as foreign investment limits and impediments for institutional investors who previously could not trade in the existing Thai Trust Fund. Investors will receive the same financial benefits as if they have invested in the listed securities except that they will have no voting rights. Who can trade All types of investors are allowed to trade NVDR. Underlying Securities All listed securities in the SET. How to trade The trading procedure is similar to the procedure for other listed securities. Investors wishing to trade the NVDR for any security can send their requests during normal trading hours via their brokers by specifying their trading orders to be the NVDR type. This procedure is provided in the ASSET system. Price Quotation Same as those of the underlying securities. Brokerage Commission Same as those of the underlying securities. Disclosure of Trading Data Look at the trading data of underlying securities. Trading Suspension Posting Halt (H) or Suspension (SP) signs will be done in the same period as the underlying securities. Acquisition report NVDR holders have to report the acquisition or disposal of their NVDRs and underlying securities to the Thai NVDR Co. Ltd. in the same manner as reporting acquisition or disposal of the underlying securities. When the aggregate total acquisition or disposal reaches any multiple of 5% of the underlying company's registered capital. When the aggregate total acquisition of disposal is up to 25% of the underlying company's registered capital, the Thai NVDR Co., Ltd. will buy the excess number of NVDRs back from the holder. Clearing and settlement Like the clearing and settlement process for other listed securities, the NVDR is also cleared and settled by the Thailand Securities Depository Co. Ltd. (TSD), through brokers, at T+3 Registrar of NVDR The Thailand Securities Depository Company Limited (TSD) Deposit of NVDR The Thailand Securities Depository Company Limited (TSD) Tax Benefit Types of Investors   Capital Gains   Dividend Individual Resident in Thailand (Stay in Thailand more than 180 days in that tax year) Tax Free - Must pay a 10% withholding tax but can exclude this income from the year-end personal income tax calculation. - Or if the 10% withholding tax is not paid, then the income must be included in the year-end tax calculation. Individual Non-resident in Thailand(Stay in Thailand less than 180 days in that tax year) Tax Free 10% withholding tax Resident Company and Registered Partnership in Thailand Must declare all capital gains from trading securities at the SET for corporate income tax assessment at the rate of 30% Same as capital gain Non-resident Company and Registered Partnership in Thailand 15% withholding tax 10% withholding tax NVDR Conversion Any trading must record put-through transaction via The Stock Exchange of Thailand. From securities to NVDRs If investors wish to convert their securities on hand into NVDRs, they must record put-through transactions (selling the securities and buying the NVDRs) in the SET. From NVDRs to securities Any NVDR holder who needs to change his holding position from NVDRs to securities, must process the transaction via the put-through system at the Stock Exchange of Thailand Remark : Any conversion must be done through a securities broker.

Last updated: 25 October 2002