Bourse in share aid project for charity

Bourse in share aid project for charity

The Stock Exchange of Thailand (SET) has launched a "share donation" project, which aims to reduce the operating costs of existing odd-lot shares by donating them as financial aid to the Sai Jai Thai Foundation.  

To commemorate its 40th anniversary, the SET is encouraging general investors to donate odd-lot shares to the foundation. Share prices will be based on current market prices while the donation is tax-deductible. 

The Sai Jai Thai Foundation was established in 1975 to help soldiers, police officers, teachers and volunteers who have been injured or permanently disabled as a result of the unrest in the deep South or while fighting for the country. Impoverished senior citizens are also covered by the foundation's aid. 

Amara Intawongsa, the foundation's director of finance and accounting, said its revenue had dwindled while yearly expenses continued to rise. Low bank deposit rates are also not helping.  

"The foundation spends 95 million baht a year to help 3,842 members. Our welfare covers monthly financial aid, hospital fees, physical check-ups for senior citizens, scholarships for unfortunate children and more," said Mrs Amara. 

She added that donated money, land and property, equities and bonds were invested to earn returns to help keep the foundation going.  

However, the foundation would never sell donated shares but keep them for dividend yields.

"The dividend from the SET's donated shares might not be substantial but at least it will be able to help take care of members," she said.

The share donation, initiated by the Thailand Securities Depository (TSD), a subsidiary of the SET, is viewed as a win-win project. The TSD manages the operating costs of odd-lot shares deposited at its office. 

Yupawan Sirichainarumitr, senior vice-president of the SET, said some retail investors had complained about the trivial amount of shares they hold, which sometimes incur costs. 

"Many have no idea what to do with the odd-lot shares they hold. The dividend from these shares is tiny and not worth the costs and time," Ms Yupawan said. 

For the SET the cost of issuing dividend cheques for these shares is also not worth it. 

"So it would be useful if we can gather these odd-lot shares for donation," Ms Yupawan said.

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