Custody services - Thailand

14.11.2017

Income collection

Service offered

Remarks

Notification to customers

Standard reporting

No specific deviations from standard reporting provided by CBL apply to the Thai market.

Customers who have a holding position under pending settlement status on record date will not be entitled to gain benefit of corporate action/income entitlements from the issuers. These customers will receive compensation from the originating defaulted selling broker at the rate of 115% as financial benefits for corporate action/income entitlements.

The TCH will facilitate to call the penalty at 115% from the defaulted selling broker to pay to the pending receiver as a compensation for financial benefits. The compensation shall be paid within 15 calendar days.

The compensation for financial benefits, which the TCH will facilitate, will cover the following corporate events: dividend payments, interest payments, all privileges (for example, when the company announces more than one corporate action), principal payments (redemptions), rights issue, capital return, warrant exercise (last exercise) and other benefits in share subscription for existing shareholders (for example public offering, preferred shares subscription, right to subscribe shares of subsidiary company).

The TCH, however, will not cover the following corporate events: meetings, transferable subscription rights (TSR) and  bonus issues (the right to receive free warrant). The compensation for these event types must be directly negotiated between originating defaulted selling brokers and the customer.

Payment of proceeds

Income payments will be credited to the account holder based on the positions recorded on books close date.

The proceeds will be credited with same-day value as received by CBL. Generally, this will be done on PD+1, depending on receipt of the cheque on PD in the local market.

Interest and redemption proceeds from debt securities, warrants and unit trusts must be re-invested or repatriated same day.

 

Corporate actions

Service offered

Remarks

Notification to customers

Clearstream Banking advises customers of their entitlement to participate in Thai corporate actions (including, but not limited to, rights issues, stock split and tender offers) subject to their availability to foreign investors.

No specific deviations from standard reporting provided by CBL apply to the Thai market.

Customers who have a holding position under pending settlement status on record date will not be entitled to gain benefit of corporate action/income entitlements from the issuers. These customers will receive compensation from the originating defaulted selling broker at the rate of 115% as financial benefits for corporate action/income entitlements.

The TCH will facilitate to call the penalty at 115% from the defaulted selling broker to pay to the pending receiver as a compensation for financial benefits. The compensation shall be paid within 15 calendar days.

The compensation for financial benefits, which the TCH will facilitate, will cover the following corporate events: dividend payments, interest payments, all privileges (for example when the company announces more than one corporate action), principal payments (redemptions), rights issue, capital return, warrant exercise (last exercise) and other benefits in share subscription for existing shareholders (for example public offering, preferred shares subscription, right to subscribe shares of subsidiary company).

The TCH, however, will not cover the following corporate events: meetings, transferable subscription rights (TSR) and bonus issues (the right to receive free warrant). The compensation for these event types must be directly negotiated between originating defaulted selling brokers and the customer.

Instruction to CBL
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges etc.

In addition, CBL informs customers, on an “as and if received” basis, of unscheduled securities events occurring on account holdings such as rights offers, exchange offers, purchase offers etc.

Proxy Voting procedures

Proxy voting services are available in CBL for this market. For details about the proxy voting services offered by CBL, please refer to the CBL Customer Handbook and, for the market specific practices, please refer to the Market Profile - Thailand.

Note: Due to the implementation of pending settlement in Thailand, the Thailand Clearing House (TCH) will not cover meetings. The compensation for this event type must be directly negotiated between originating defaulted selling brokers and the customer.

Entitlement compensation rules

Exchange of Foreign Shares into Local Shares

Customers that want to exchange Foreign Shares into Local Shares should send an instruction for the exchange via authenticated means of communication to:

Clearstream Banking AG
Corporate Action Unit
D-60485 Frankfurt am Main

The exchange can take one to two days.