6. Risks Relating to Restriction from buying and selling particular foreign securities or with limitations
Due to various reasons, some foreign securities may be restricted from buying or selling or imposed with some limitations at the discretion of us, brokers, custodians, exchanges, regulators, governmental agencies or agents and etc, without prior notice or disclosure of reasons. In general, the reasons may include but not limit to compliance control, difficulty in share settlement, potentially unusual tax impact, foreigners' share ownership close to or already over regulatory limit.
Example 1: In late May 2021, we were notified by our Thailand stock broker, that buy order on KBANK.TH (NVDR class of a Thailand listeco, KASIKORNBANK PLC) had been rejected by The Stock Exchange of Thailand since the NVDR class accounted 24.39% of paid-up capital, close to the regulatory limit 25%.
Example 2: In early Feb 2021, our US stock broker notified us it would reject sell order on GME (Gamestop - A class) if order price was USD3,000 or above in order to effectively monitor and manage its risk profiles. For your information, the stock price was very volatile in late Jan, rocketed more than 12 folds to USD483, day-high on 28 Jan 2021, then tumbled 75% to USD112.25 on the same day, then rebounded by 268% to USD413.98 on next trading date.