SG, Thailand launch SGX-SET Depository Receipts Linkage

This would increase the opportunities for cross-border investments.

The Monetary Authority of Singapore (MAS) and Securities and Exchange Commission (SEC) of Thailand announced via a joint statement the launch of the Thailand-Singapore Depository Receipts (DR) Linkage by the Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET).

In this DR Linkage, depositary receipts that contain securities listed on one market will be issued for trading on the other. The aim of this is to deepen the connectivity between the two and also serve as an opportunity for cross-border investors. 

Tim Tuang Lee, Assistant Managing Director, Capital Markets, MAS, was hopeful of the efforts for interconnectivity between the two countries.

“This initiative demonstrates the collaborative efforts between Thailand and Singapore to improve the interconnectivity between our two markets and provide investors access to a wider range of investment opportunities. We look forward to the successful introduction of DRs under the DR Linkage, and will continue to work closely with SEC Thailand to further enhance mutual connectivity and broaden investment selections for our investors.”

Ruenvadee Suwanmongkol, SEC Thailand Secretary-General, also highlighted the amendments undertaken the facilitate this collaboration.

“To promote the development of cross-border products, SEC Thailand has put considerable efforts to revise rules and regulations related to DR issuance in Thailand, which entered into force on 16 June 2021. These amendments help to enhance flexibility for DR issuers and to increase investment options for investors. This initial collaboration between SGX and SET is a welcome addition to Thailand and Singapore cross-border development. SEC Thailand looks forward to the successful implementation and participation from market stakeholders. Meanwhile, we will continue to explore further collaborations with MAS in order to advance our capital markets development in the future.”