Singapore Depository Receipts (SDR)

Frequently Asked Questions

Singapore Depository Receipts (SDR) are instruments issued by the depository which represents beneficial interest of an underlying security listed on an overseas exchange. SDR facilitate investments into overseas listed companies without having to deal with the complexities of cross-border trading and settlement.
SDR provide investors beneficial interest in an overseas listed security without having to purchase the security directly on an overseas exchange. SDR is issued by the depository and each SDR is represented by a specific number of underlying securities, held with a custodian in the home market on trust for SDR holders.
Currently, there are SDR issued on Non-Voting Depository Receipts (NVDR) on shares of a company listed on the Stock Exchange of Thailand (SET). An NVDR is an instrument issued by the Thai NVDR Co., Ltd (Thai NVDR), a subsidiary of the SET, to facilitate trading by reducing barriers of foreign ownership limits. Generally, NVDR share the same prices and benefits as its underlying shares but do not carry any voting rights.

SDR are classified as Excluded Investment Products (“EIP”) and are generally for investors who expect low to moderate likelihood of loss of principal investment amount, with generally smaller potential returns. Investors who invest in this product should have a basic understanding of financial instruments with standardised terms and no unusual or complicated features.

Investors should refer to the SDR programme disclosure document provided by the depository for the features, and characteristics including a description of how corporate actions or distributions will be handled, as well as risks and other information. The SDR programme disclosure document is provided on https://www.singaporedr.com/.

SDR provides a convenient and cost-efficient way for investors to gain exposure to global markets for portfolio diversification. Local brokerage and exchange fees apply for trading of SDR, there are no additional overseas trading fees of foreign exchange fees. SDR are traded on SGX-ST and custodised with the CDP. For non CDP linked accounts, it will be custodised with CDP under Phillip Securities’ name)
SDR are quoted and traded on SGX-ST. Investors can buy and sell SDR through their local brokerage account, similar to trading other listed securities on SGX.
The prices of SDR generally references the price of the underlying securities but may be influenced by other factors including currency exchange rates, interest rates, liquidity, supply and demand and global economic conditions.
When investing in SDR, you have the beneficial interest of an overseas security, but not the legal title. As such, SDR gives you the rights and benefits of owning the overseas securities, subject to the terms and conditions of the SDR.
SDR holders are able to convert their SDR to the underlying securities via a SDR issuance and cancellation process. Please refer to https://www.singaporedr.com/forms/  for the SDR issuance and cancellation form, fees payable and instructions.
The depository will use reasonable endeavours to pass on benefits of any corporate actions to SDR holders. The ability for SDR holders to participate in corporate actions will be offered whenever practicable, subject to the terms and conditions of the SDR. If an SDR holder wishes to participate directly in the corporate action of the underlying company, a cancellation request should be submitted to take delivery of the underlying security, thereafter the investor of the underlying security may participate directly in the corporate action.
You can find them on https://www.sgx.com/securities/company-announcements including record date, indicative payment etc
The tax implications associated with investing in SDR depends on the tax laws of the foreign country. As such, it’s advisable for investors to seek guidance from a tax professional to understand their tax obligations.

To apply for SDR to be issued to you, you will need to:

(i) Submit an issuance request by completing the form “SDR Issuance and Cancellation Form” directly to the Depository; or

(ii) Instruct your broker to submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf.

 

You can obtain the “SDR Issuance and Cancellation Form” from the SDR website at https://www.singaporedr.com/forms/

You need to have a CDP securities account held either directly with the CDP or a Depository Agent with the CDP for SDR to be issued to you.

 

Submit an issuance request by completing the “SDR Issuance and Cancellation Form” directly to Depository

(i) Instruct your custodian to deliver the relevant Underlying NDVR to the Depository for issuance of new SDR to you

(ii) Complete and lodge the “SDR Issuance and Cancellation Form” with the Depository by following the instructions on the “SDR Issuance and Cancellation Form”; and

(iii) Pay the issuance fees to the Depository.

 

Instruct your broker to submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf

(i) Deliver the relevant Underlying NDVR to the Depository for issuance of new SDR to you;

(ii) Complete and submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf; and

(iii) Pay the issuance fees to the Depository.

The Depository shall endeavour to issue the SDR to you within 3 Business Days from the date of receiving (i) a valid and completed issuance request and (ii) the underlying NVDRs. Incomplete or inaccurate submissions may result in delays in processing your issuance request.

To apply for cancellation of SDR, you will need to either:

 

(i) Submit a cancellation request by completing the “SDR Issuance and Cancellation Form” directly to the Depository,

To submit a cancellation request by completing the “SDR Issuance and Cancellation Form” directly to the Depository

(i) Deliver SDR to the Depository’s designated account with the CDP;

(ii) Complete and lodge the “SDR Issuance and Cancellation Form” to the Depository by following the instructions on the form;

(iii) Provide details of your nominated brokerage account into which the Underlying NVDRs can be delivered;

(iv) Pay the cancellation fee to the Depository in Singapore dollars; and

(v) Instruct your custodian to receive the Underlying NVDRs on your behalf.

 

(ii) Instruct your broker to submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf.

To instruct your broker to submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf,

(i) Deliver SDR to the Depository’s designated account with the CDP;

(ii) Complete and submit the “SDR Issuance and Cancellation Form” to the Depository on your behalf;

(iii) Provide the Depository with delivery instructions for the Underlying NVDRs to which your SDR relate; and

(iv) Pay the cancellation fee to the Depository.

 

You can obtain the “SDR Issuance and Cancellation Form” from the SDR website at  https://www.singaporedr.com/forms/

 

The Depository shall endeavour to deliver the Underlying NVDR to you within 3 Business Days from receiving (i) a valid and completed cancellation request and (ii) the relevant number of SDR. Incomplete or inaccurate submissions may result in delays in processing your cancellation request.

No, CPF/SRS only allows investments in Singapore incorporated companies listed on Mainboard of SGX. SDR does not qualify under this category.
Yes, SDR follows SGX’s trading hours and mechanism. That means, as long as the Singapore market is open, you can trade SDR even on Thai holidays. On the other hand, when it is a non-trading day in Singapore, you will not be able to trade SDR.

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

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Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com