This ruling deals with procedures followed by Thai NVDR to comply with conditions under which the Bank of Thailand (BOT) has allowed Thai NVDR to hold shares of financial institutions or their parent companies.
These procedures will be followed whenever such holdings by Thai NVDR are over 10.00 percent but do not exceed 25.00 percent of total paid-up capital of the financial institution which is stated in Sections 18 and 55 of the Financial Institutions Businesses Act B.E. 2551 (2008).
The procedures are:
- Thai NVDR will record the information needed to find out if each unit holder, directly or indirectly, holds NVDRs and/or shares of financial institutions or their parent companies totaling over 10.00 percent of paid-up capital.
- Per Sections 18 and 55 (above), any one investor is allowed to hold NVDRs and shares of financial institutions or their parent companies only up to, and including, 10.00 percent of total paid-up capital of the financial institution in question. Thus, if this limit is violated, the law allows Thai NVDR to pay dividends or benefits to that investor only up to, and including, the 10.00 percent limit.
- Thai NVDR will, by letter, instruct investors holding NVDRs and shares of financial institutions or their parent companies totaling more than 10 percent of paid-up capital to dispose of those excess NVDRs and/or shares within 90 (ninety) days of their having purchasing the relevant NVDRs and/or shares. In addition, as required by BOT, Thai NVDR will inform BOT of this situation.
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