Asset servicing - Thailand

20.07.2020

Income collection

Service offeredRemarks
Notification to customers

Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal, CreationOnline and Xact File Transfer.

See Section 8 “Asset servicing” of the Customer Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. 

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.  

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

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

i) 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.

ii) When the issuer pays stock dividend (DVSE) together with cash dividend (DVCA) on the same ISIN, the issuer will usually deduct withholding tax on the DVSE from the DVCA paid. In this case, in relation to the DVCA, CBL shall send a MT568 to inform customers of such a situation. Whilst in relation to the DVSE, the related information would already be in the additional text of the MT564 notification. 

iii) For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook.

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

Please refer to the Entitlement Compensation Rules - Thailand.

Conversion of foreign shares into local shares

Customers who want to convert foreign shares into local shares should send a SWIFT MT599 free-format to Clearstream with the following details:

Attn: Singapore Corporate Actions (SCA)

Please take this MT599 as an authorisation to convert our foreign shares into local shares per the following details:

CBL Account Number:
Quantity:
Foreign share ISIN:
Securities name:

Note: The conversion of foreign shares into local shares can take one to two days.