Thai Brokerage And Electronic Held Equities (stocks)

[pattaya001]

Hello,

Can an investor clarify, if I transfer electronically held shares in a Thai brokerage to Certificate form, do I bypass global financial ruin in the immediate years of uncertainty, in that, if the Thai government were to freeze brokerage assets, as per se the 97 crisis, am I better off holding certificates of Thai companies, or not?

I have been informed it takes 45 days to transfer from electronic to certificate form at a cost of one-hundred baht. And it takes two days to sell on (commision*), with the certificated form at any Thai brokerage.

Thank you kindly,

p001

Edited July 20, 2008 by pattaya001

[pattaya001]

Hello,

Can an investor clarify? Should I transfer my electronically held shares in a Thai brokerage account to certificate form, and the Thai government were to freeze all (most) brokerage assets, as per se the 97 crisis, am I better off holding certificated form of Thai listed companies, or not?

All I know is, it takes 45 days to transfer from electronic to certificate form at the cost of one-hundred baht. And it takes two days to sell on (commision*), with the certificated form at any Thai brokerage. Sound right, but are my shares worth anything should the markets crash in Thailand?

[pattaya001]

Can any investor clarify? If I transfer my shares in a Thai brokerage to certificate form, and the Thai government were to freeze brokerage assets, as they did in the 97 crisis, do I avoid my certificated shares being seized or being valued worthless in such an event?

In days, how long might it take to transfer to certificated shares, and then sell as certificated shares at a later date?

Once in possession of share certificates, have I forfeited my entitlement to receive listed company dividend(s)?

[pattaya001]

Can any investors clarify,

If I change my Thai brokerage shares to certificated form, and the government were to withold brokerage assets as they did in the 97 crisis, do I avoid my certificated shares being valued worthless in the event of the 97 (re)-occurence?

(In days), How long might it take to transfer to certificated shares, and then, sell-on at a later date?

Once in possession of a share certificate, do I forfeit my entitlement to receive company dividends?

If listed shares were frozen (witheld), or perhaps even delisted in the climate of a financial meltdown, can I re-sell certificateD shares back to the listed companies (at my price<>)?

Edited August 1, 2008 by pattaya001

[AFKAFSinLOS]

I think you've made similar posts without reply. I'll add the bits I think I know, as I don't hold any paper certificates these days...

What you seem to be worried about is legislation being passed at country level to compulsorily acquire any shares you have. i.e some form of nationalisation. In the unlikely event that happens in Thailand, governments can be a law unto themselves...especially if they are claiming things like national security interests.

Can any investors clarify,

If I change my Thai brokerage shares to certificated form, and the government were to withold brokerage assets as they did in the 97 crisis, do I avoid my certificated shares being valued worthless in the event of the 97 (re)-occurence?

The format of your certificates, whether paper or electronic has no bearing on the value of your shares. In some countries using a nominee or brokerage account can affect your ability to exercise voting rights, and things like that, however, you still ultimately own them at the same price.

(In days), How long might it take to transfer to certificated shares, and then, sell-on at a later date?

Once in possession of a share certificate, do I forfeit my entitlement to receive company dividends?

No, not at all.

If listed shares were frozen (witheld), or perhaps even delisted in the climate of a financial meltdown, can I re-sell certificateD shares back to the listed companies (at my price<>)?

You have no automatic right to do sell your shares back to a company at your price, regardless of whether paper based certs or electronic registration. In the event shares are delisted and there is a compulsory buy back for whatever reason, they will usually be done at a price set by the company not the individual. However, the company cannot just pick any old price and rip you off. There are checks in place such as the compulsory purchase price cannot be below the trading price in the last x number of days...

[pattaya001]

I think you've made similar posts without reply. I'll add the bits I think I know, as I don't hold any paper certificates these days... Under normal circumstances, I would not hold paper either. <Wise> and <Economical>

What you seem to be worried about is legislation being passed at country level to compulsorily acquire any shares you have. i.e some form of nationalisation. In the unlikely event that happens in Thailand, governments can be a law unto themselves...especially if they are claiming things like national security interests.

But if I minimize impact at ground level, in that, my brokerage runs into financial ruin, then are my certifcated shares independent of the brokerage, and worth value if sold onto another brokerage?

Plausible is the scenario, that in certain circumstances, I can even sell my Thai share certificates at ''some'' UK Banks, as I wish, as they are not interdependent of the Thai brokerage (account), right?

Are there any differences between electronically held shares and certificated shares, as I hope to sell certificated shares to others brokerages, assuming (right or wrong) my certificates are not inextricably ''exposed'' to an unforseen '08 carnage unfolding (but hold value)?

OP's OM:

If I change my Thai brokerage shares to certificated form, and the government were to withold brokerage assets as they did in the 97 crisis, do I avoid my certificated shares being valued worthless in the event of the 97 (re)-occurence?

The format of your certificates, whether paper or electronic has no bearing on the value of your shares. In some countries using a nominee or brokerage account can affect your ability to exercise voting rights, and things like that, however, you still ultimately own them at the same price.

Once in possession of a share certificate, do I forfeit my entitlement to receive company dividends?

No, not at all.

If certificated shares were frozen (witheld), or perhaps even delisted in the climate of a financial meltdown, can I re-sell them back to the listed companies at my price<>?

You have no automatic right to do sell your shares back to a company at your price, regardless of whether paper based certs or electronic registration. In the event shares are delisted and there is a compulsory buy back for whatever reason, they will usually be done at a price set by the company not the individual. However, the company cannot just pick any old price and rip you off. There are checks in place such as the compulsory purchase price cannot be below the trading price in the last x number of days... Duly appreciated and noted.

[pattaya001]

One further bug-bear self-inflicted query, which is, (assuming certificated shares are not interdependent of the original brokerage AC), and, I purchase further shares, (i.e hold new electronic shares), in the existing account, with new priced and ''oversold'' value, do I have two completely different portfolios, (i.e. one dependent and one active and valued against the SET)?

[pattaya001]

Remember the 97 asian crisis, (i.e. national security interests). I am worried about legislation being passed at country level to compulsorily acquire the electronically shares held in my wife's name. In the unlikely event that happens again in Thailand, are we able to lessen our exposure to such risk, given governments can be a law unto themselves?

Risk-Management - (Re-inforcing Success)

[1] If I change the wife's electronic brokerage shares to certificated form, and the government were to claim national secuirty interests, as they did in the 97 crisis, are these certificated shares worth value, in the event we have purchased paper certificates, then presumably this will not show on the brokerage computer automated account, right or wrong?

[2] Or if our brokerage runs into financial ruin, do we minimize impact pre-exposure, where we transfer our electronic shares to certifcated form, then perhaps close the account, where value is held, if the papers are sold to another brokerage, which by all accounts is possible? Only the SET are not bothered to inform us otherwise.

[pattaya001]

Remember the 97 asian crisis, (i.e. national security interests)? I am worried about legislation being passed at country level to compulsorily acquire electronically shares held in my wife's name. In the unlikely event that happens again in Thailand, can we lessen our exposure to such risk, even though governments can be a law unto themselves?

Risk-Management

[1] If I change the wife's electronic brokerage shares to certificated form, and the government were to claim national secuirty interests, as they did in the 97 crisis, are these certificated shares worth value, in the event we have purchased paper certificates, then this will not show on the brokerage computer automated account, right or wrong?

Or

[2] If our brokerage runs into financial ruin, do we minimise impact pre-exposure, where we transfer our electronic shares to certifcated form, then perhaps close the account, where value is held, if the papers are sold to another brokerage? By all accounts is possible. Only the SET are not keen to inform us otherwise. Skittish.

Edited August 11, 2008 by pattaya001

[CWMcMurray]

Haven't you opened this exact same topic a half a dozen times in the last couple of weeks???

[Maestro]

Can an investor clarify? ...

I am merging this topic “Transfer Of Thai Shares To Certificate Form, Are there any investors in South East Asia...” into the earlier topic “Thai Brokerage And Electronic Held Equities (stocks), Benefits of transfering to certificate form (100 baht)” started by the same member.

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Maestro

[Maestro]

Can any investor clarify? ...

I am merging this topic “Thailand Set Market Bourse, Share Transfer to Certificate” into the earlier topic “Thai Brokerage And Electronic Held Equities (stocks), Benefits of transfering to certificate form (100 baht)” started by the same member.

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Maestro

[Maestro]

...Can any investors clarify...

I am merging this topic “Thai Shares, 3 Questions” into the earlier topic “Thai Brokerage And Electronic Held Equities (stocks), Benefits of transfering to certificate form (100 baht)” started by the same member.

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Maestro

[Maestro]

Remember the 97 asian crisis...

I am merging this topic “Thai Stocks 2008, Two Questions” into the earlier topic “Thai Brokerage And Electronic Held Equities (stocks), Benefits of transfering to certificate form (100 baht)” started by the same member.

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Maestro

[Maestro]

Remember the 97 asian crisis...

I am merging this topic “Avoid Set Credit-crunch, How to avoid the Carnage?” into the earlier topic “Thai Brokerage And Electronic Held Equities (stocks), Benefits of transfering to certificate form (100 baht)” started by the same member.

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Maestro