Phillip Securities Pte Ltd has introduced an unsponsored Singapore Depository Receipts (SDR) Programme, paving the way for the issuance of SDRs that represent Non-Voting Depository Receipts (NVDRs) listed on the Stock Exchange of Thailand.

The depository will issue SDRs from time to time without a prospectus, relying on the Securities and Futures (Offer of Investments) (Exemption for Depository Receipts) Regulations 2023. Application for quotation of the SDRs will be submitted to Singapore Exchange Securities Trading Limited (SGX-ST); listing approval is subject to SGX-ST’s satisfaction with the depository, the underlying Thai companies, the NVDR structure and the Thai exchange.

Each SDR will be evidenced by a Master SDR registered in the name of The Central Depository (Pte) Limited, with Phillip Securities (Thailand) Public Co. Ltd. appointed as the initial custodian. Investors will receive cash dividends and other distributions—converted to Singapore dollars where practicable—net of applicable fees, expenses and taxes.

The offering document stresses that SDRs do not confer voting rights and warns of risks linked to price volatility, currency fluctuations between the Thai baht and Singapore dollar, liquidity constraints and the potential for trading halts mirroring suspensions on the Thai exchange. The NVDR issuer and the underlying Thai companies are not involved in the SDR issuance.

Key fees include an issuance fee of up to SGD5 per 1,000 SDRs (minimum SGD50, maximum SGD1,000), a similar cancellation fee, and corporate-action charges of up to 1 per cent on cash dividends and up to 0.25 per cent on proceeds from securities sales. The depository may adjust these fees with at least one month’s notice.

The SDR terms allow amendments without investor consent unless changes would cancel entitlement to, or impair withdrawal of, the underlying NVDRs. The depository also retains discretion to terminate the programme, subject to a 90-day notice period, or shorter if reasonable.

Phillip Securities emphasised that investing in SDRs involves significant risks and may not be suitable for all investors. Potential buyers are advised to review the full document, consider their own circumstances and seek professional advice before investing.