Major Stock Exchange Introduction

Major Index Introduction

SET Index

Include all the listed ordinary shares, the index is calculated from the market values of all common stocks. The Index was set at 100 points and established on 30th April 1975.

SET 50 Index

Include first 50 listed companies in terms of the large market values, high liquidity and compliance with requirements regarding the distribution of shares to minor shareholders. It is capitalization-weighted price index with the same methodology as the SET Index, and the constituents are subject to semi-annual review. 1,000 points are taken as the basis on 16 August 1995.

SET 100 Index

Include first 100 listed companies in terms of the large market values, high liquidity and compliance with requirements regarding the distribution of shares to minor shareholders. It is capitalization-weighted price index with the same methodology as the SET Index, and the constituents are subject to semi-annual review. 1,000 points are taken as the basis on 30 April 2005.

SET Industry Group Index and Sectoral Index

All the indices are calculated from the prices of the common stocks which share the same fundamentals which characterize each particular industry group and sector, respectively, also market capitalization-weighted. The base value is 100 points on 31st December 2003.

Account Opening Procedures

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Trading Information

Commission

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Trading Matters

Shares Classification

Local Share

This is the basic category of common stocks when listing on the SET and is the common option for the Thais; the Thai investors, holding this kind of share, are entitled to dividends and voting rights. Therefore, Local Share has usually the higher turnover liquidity than foreign share and NVDR. Non-Thai investors can also trade Local Share, however, they are entitled to neither dividends nor voting rights.

Foreign Share

The SET has set up a foreign board for the non-Thai investors to trade and most listed companies have issued Foreign Share to trade on that board but subject to a percentage cap in terms of total outstanding shares of all classes. Low liquidity is not uncommon because of the smaller number of Foreign Share investors than Local Share. In addition, price quotes and transaction prices may differ from the Local Share. The holders of Foreign Share are entitled to both dividends and voting rights.

1. The staff of the company, which is listed on the SET, exercises employee share options, and receive the Foreign Share;
2. The non-Thai receive the Foreign Share through placement.

Holders of the Foreign Share can give special trade orders, which are allowed to sell the share on the local board.

NVDR (Non-Voting Depository Receipt)

Thai NVDR Co., Ltd. (www.set.or.th/nvdr) was established by the SET in 2000, which is responsible for issuing and selling NVDR to investors. NVDR is recognized a valid security by SEC and automatically become listed in the SET. The aim of NVDR is to stimulate trading activities of the Thailand stock market. Apart from ordinary shares, the underlying securities may be preferred share, warrant and transferable subscription rights (TSR).

NVDR is available to the local, foreign and institutional investors. The transaction procedures of the NVDR are the same as the Local Share, price quotes of local share can be taken as a reference for NVDR.

NVDR holders are entitled to the same financial benefits as the ordinary share investors, such as: dividend, rights or warrant. The only difference between investing in NVDR and in ordinary share is in regard to voting. NVDR holders cannot be involved in company’s decision-making, whereas ordinary share investor can, unless the agenda concerns “delisting”.

Can NVDR be transferred into Local Share or Foreign Share?

Yes, through SET’s Put Through (PT) system.

Thailand Exchange Traded Funds (ETF)

The SET established the first ThaiDEX SET50 ETF on 6th September 2007.

Share Trading Unit

The size of board lot for each security is usually 100 shares, any order of less than 100 shares will be considered as an odd lot. For each security priced at 500 baht or higher for 6 consecutive months, one board lot is equivalent to 50 shares.

Price Spread for Thailand stock

Volatility restriction on Thailand stock market

Circuit Breaker is a system to ease any unusual volatility in the market that may cause investor panic. The mechanism will be exercised in 2 stages below:

Stage 1

If the SET index falls by 10% from the previous day’s close, all trading in listed securities will be halted fro 30 minutes;

Stage 2

If the SET index falls by 20% from the previous day’s close (i.e. another 10%), all trading in listed securities will be halted fro 1 hour.
If the trading time left in a session is less than 30 minutes, or one hour (as the case may be) after the circuit breaker comes to effect, trading will be halted until the closing time of that session, and the trading will then resume in the next session.

Other Trading Issues

No short selling is allowed for Thailand stock

Trade consolidation

On the same trading day, two or more transactions executed for the same stock and the same side via the same ordering channel (i.e. client’s online input or via account executive/staff) would be consolidated as one transaction in commission computation.

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