Holding Restrictions – Investment Funds – Thailand
Restrictions on clients
There is no explicit regulation that restricts local Thai citizens from safekeeping Thai securities with a foreign institution. However, Thai citizens should note that THB cash proceeds attained from sales or corporate action events on these securities cannot be transferred from the foreign institution's NRBS account to their resident account as this type of transaction is not allowed by the Bank of Thailand.
It is the responsibility of the client to ensure compliance with the restriction.
Certain funds may impose specific restrictions on investor domicile. Clients must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Restrictions on settlement
Clearstream Banking’s cash account no. 00100869378 with Standard Chartered Bank (Thai) Public Company Limited is an Non-Resident Baht Account for Securities (NRBS) account. Client cash accounts with Clearstream Banking are considered to be NRBS accounts.
Clients must ensure that clean payments to fund settlement transactions are paid to the Clearstream Banking NRBS account.
Clients withdrawing their THB cash balances attained from sales or corporate action events can only instruct their NRBS account and must ensure that the receiving cash account is a designated NRBS account. Payments from the NRBS account to an Non-Resident Baht Account (NRBA) account are not permitted by Bank of Thailand and will fail at market level.
Clients are strongly requested to comply with the regulations as Clearstream Banking cannot be held liable for failed or late payment execution due to non-compliance with the aforementioned regulations.
More information can be found on the Cash Services – Thailand page.
Certain funds may impose specific settlement/transfer restrictions. Clients must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Restrictions on holdings
No more than one-third of the total mutual fund units can be held by one ultimate beneficial owner or his related persons.
Disclaimer
The information contained in the Holding Restrictions is based on the legal opinion obtained by CBL that was issued on 8 November 2019. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Holding Restrictions do not constitute legal advice and clients should seek advice from independent professional counsel.
Clients are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.