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,

 

(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/

 

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.