Similar to foreign business laws existing in most Asian countries, Thai laws have imposed restrictions on foreign ownership of Thai companies.
These restrictions are stipulated in the Foreign Business Act 1999 and specific laws governing certain sectors, e.g. the Banking Act, Insurance Act, and Land Act. In addition, some companies may choose to incorporate foreign ownership limit in their articles of association.
Special vehicles have been created to facilitate foreign investors so that they are able to invest in Thai securities flexibly and conveniently.
In normal practice, foreign investors have to invest in securities designated for foreign investors on the foreign board to fully obtain all voting rights and financial benefits. In case that the foreign ownership limit has been reached and foreign investors cannot acquire securities designated for foreign investors, they may choose to trade in domestic liquidity pool by investing in securities designated for local investors on the local board.
They are allowed to flexibly buy and sell securities on the local board…