Depositary receipt investments poised to proliferate

Depositary receipts (DRs) are expected to be increasingly popular with Thai investors in 2024 because they facilitate investment in well-known foreign stocks, allowing portfolio diversification and substantial returns, say executives.

DRs have steadily grown on the Thai bourse, with roughly 16 billion baht worth held by investors on the Stock Exchange of Thailand (SET) as of last month, said Rinjai Chakornpipat, the SET’s senior executive vice-president and head of market division.

The number has increased every month and the trend is expected to continue this year as many more investors are interested in new DRs, she said.

Recently emerging as an option for investing in foreign securities, DRs allow investors to invest in stocks directly via the Thai stock market.

DR issuers purchase foreign shares and sell them to Thai investors as DRs.

DRs allow…