SDR Investor Guide and Programme Disclosure
Download the SDR Investor guide and Programme Disclosure here:
SDR Key Features
Invest in overseas listed companies via SDRs through a single marketplace
Local brokerage and fees applies. No additional overseas trading fees, foreign exchange fees, or management fees
Traded, cleared and settled during SGX-ST market hours in SGD
SDRs are custodised with CDP
Ability to convert between SDRs and underlying securities
Announcements on corporate action events relating to SDRs will be published on this website
What is an SDR?
Singapore Depository Receipt (“SDR”) is an instrument that gives you beneficial interest in securities issued by a Company (“Underlying Company”) listed on the Stock Exchange of Thailand (“SET”). The security is referred to as the Underlying Non-Voting Depository Receipt (“NVDR”).
The SDR is an unsponsored programme issued by the Depository and there is no contractual relational between the Underlying Company and the Depository.
SDRs are issued and traded on SGX-ST GlobalQuote in Singapore dollars. Distributions in relation to the SDRs will be made in Singapore dollars unless otherwise specified.
What is the structure of an SDR?
By holding an SDR, you get exposure to the financial performance of the Underlying NVDR and certain benefits attached to the Underlying NVDR, without directly acquiring the Underlying NVDR.
Each SDR is represented by a specific number of Underlying NVDRs which is deposited with a Thai custodian appointed by the Depository. The Underlying NVDR is registered in the name of the Thai custodian and held on behalf of the Depository who in turn holds the beneficial interest in the Underlying NVDR on trust for you.
Differences between holding the SDRs vs Underlying NVDRs
|Ownership||SDRs give you beneficial interest in the Underlying NVDRs. The Underlying NVDRs are registered in the name of the custodian and held on behalf of the Depository who in turn holds beneficial interest in the Underlying NVDRs on trust for you.||You own the Underlying NVDRs directly.|
|Trading parameters||SDRs are traded in Singapore dollars on SGX GlobalQuote during SGX market hours.||Underlying NVDRs are traded in Thai baht on SET during SET market hours.|
|Custody arrangement||SDRs are custodised with the CDP.||Underlying NVDRs are not custodised with the CDP. They are held with your respective custodian.|
|Corporate action entitlements||The Depositiory will use reasonable endeavours to pass on the benefits of a corporate action to you. |
However, as set out in the terms and conditions of the SDRs, your ability to participate in certain corporate actions may be restricted by regulations, conditions imposed by the Underlying Company.
The timelines for participating in a corporate action, if made available to Holders, may differ from the timelines announced by the Underlying Company.
|You will be able to directly participate in the corporate actions, subject to applicable regulations and conditions imposed by the Underlying Company.|
Singapore Depository Receipts (SDR) which are classified as Excluded Investment Products (EIP) are generally for investors who expect low to moderate likelihood of loss of principal investment amount, with generally smaller potential returns. Investors who invest in this product should have a basic understanding of financial instruments with standardised terms and no unusual or complicated features.
SDR Key Features
- SDRs are quoted and traded on SGX-ST GlobalQuote during SGX market hours.
- SDRs are classified as Excluded Investment Products (EIP).
- You can buy and sell SDRs through your broker, in the same way you buy and sell shares traded on SGX.
- SDRs will be traded in Singapore dollars and you will receive any cash distributions in relation to your SDRs in Singapore dollars.
- When you own SDRs, you have the right to obtain ownership and title to the Underlying NVDR. To do so, you will need to submit a Cancellation request to the Depository.