|
19 Mar 2001 The Business Times SET plans new products to boost investment THE Stock Exchange of Thailand (SET) will introduce a new instrument for foreign investors in the second quarter of this year and index options in the third quarter in a bid to boost trading volumes, bourse officials said. Non-voting depositary receipts (NVDRs), a new investment vehicle to allow foreign investors unlimited holdings in Thai stocks, are due to start trading in the second quarter, SET president Vicharat Vichit-Vadakan told reporters. NVDRs had originally been due to start trading in the first quarter. "We hope to be ready soon as the issue is just pending approval from the Cabinet," Mr Vicharat said. Until now, foreign investors have been constrained by laws preventing more than 49 per cent of any Thai company being in foreign hands. This means foreign investors have to buy shares on the stock exchange`s foreign board, usually at a premium. The new scheme provides for foreign investors to buy NVDRs from a special company, which would then invest the money in the specified stock. Because the firm would actually own the shares, the foreign ownership restrictions would not be an issue. NVDR holders would not have voting rights, however. Premiums on the foreign board have narrowed in recent months in anticipation of the introduction of NVDRs. Mr Vicharat said the SET hoped to introduce options on the SET-50 Index of big-cap stocks in the third quarter. "We`d like very much for it to start trading in the third quarter. Almost everything is ready except back office," he told Reuters. SET executive vice-president Yuth Vorachattarn said he expected about 10 or 15 companies to list new shares in 2001, including Thai Airways International, which plans to increase the number of its shares in private hands. Mr Yuth said the new listing would raise the paid-up capital of Thailand`s stock market by 48 billion baht (S$1.9 billion) from 800 billion currently. Mr Vicharat said there was plenty of potential for expansion of the stock market, as retail investors in Thailand had so far invested very little in stocks compared with bank savings. But he conceded that the bearish trend in global markets and the world economy was a concern. "It will of course affect us to some extent, not only the stock market but the Thai economy as a whole," he said. "The important thing is that we are prepared for that." -- Reuters |
|
| aus der Diskussion: | Waste or make money in Thailand |
| Autor (Datum des Eintrages): | BodyG (19.03.01 09:18:08) |
| Beitrag: | 560 von 611 (ID:3126928) |
| Alle Angaben ohne Gewähr © wallstreetONLINE | |