It became a heated topic in the investment community last night when the Securities and Exchange Commission (SEC) made a significant move involving a major financial institution, Krungthai Bank (KTB), the issuer of Depositary Receipts (DRs) for foreign securities, specifically DR80, raising concerns about the sufficiency of the underlying reference securities.
This alarmed many investors, prompting questions about the security of assets in their portfolios. Thairath Money will summarize all key points—from the major news to official clarifications and what investors can do.
Last night, the SEC issued a breaking statement following reports on social media about insufficient foreign reference securities backing the Depositary Receipts (DRs) issued and sold by Krungthai Bank Public Company Limited (KTB) under the SEC’s supervision.
The SEC has now ordered KTB to clarify the exact amount of foreign reference securities deposited with the custodian as of 31 December 2025 and to communicate this to DR holders. The SEC emphasized that issuing and selling DRs must be fully backed by sufficient foreign reference securities to protect investors’ rights and interests, ensuring the DR structure complies with laws and regulations.
Issuers of DRs must report the number of DRs and corresponding foreign reference securities to the SEC and the Stock Exchange of Thailand. The SEC has conducted routine checks in the past.
This development signals an urgent reminder for the market to focus on governance and investor protection.
Recently, Krungthai Bank issued an official statement to ease market and customer concerns, affirming that throughout the DR80 issuance and sale process, it has strictly followed regulations. The bank holds a full amount of underlying reference securities corresponding to the DR80 units issued and not yet redeemed.
Currently, the bank deposits all reference securities with the global custodian, The Hongkong and Shanghai Banking Corporation Limited (HSBC). Krungthai reiterated compliance with Thai regulations by reporting the quantity of reference securities and related information to the SEC, providing a detailed list of nearly 60 DR80 reference securities for verification.
For example, AAPL80 has 27,216,000 DR units issued, and the bank holds 27,216 Apple shares as reference (at a conversion ratio of 1,000:1), exactly matching the required amount.
This news offers an important lesson for investors: understanding exactly what you are buying, especially with new products like DRs or bonds with embedded derivatives, since legally you may hold a "contract" or "right," not the underlying shares directly.
Therefore, investors need to review their portfolios to ensure they fully understand the instruments they hold, because in finance, "investing carries risks, but investing without knowledge is the greatest risk."
To understand the “product” purchased, one should study the prospectus details to grasp the risks, conversion ratios, and benefits such as dividends, recognizing that these are rights certificates, not direct stock ownership.
Additionally, regularly check the "fair value" against the actual market price to avoid overpaying above fundamental value, and follow reliable news sources like the SEC website (www.sec.or.th) or the Stock Exchange of Thailand (www.set.or.th) directly instead of relying on social media rumors for the most accurate information.
Regarding DRs linked to foreign stocks, the Stock Exchange of Thailand (SET)recommends investors conduct comprehensive risk analysis, including the economic conditions of the home country, industry trends, and the nature of the underlying assets, whether individual stocks or ETFs, to time investments appropriately.Investors should also be aware of tax implications: capital gains are tax-exempt, but dividends are subject to a 10% withholding tax, which affects net returns.
Sources: SEC, Krungthai Bank, Stock Exchange of Thailand
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