4 April B.E.2543To Managers All Finance Companies All Finance and Securities Companies All Credit Foncier Companies Ref.BOT.FPG.(11)C.776/2543 Re: Purchasing or holding shares in limited companies exceeding the legal limits In order to support the debt restructuring between financial institutions and their debtors with the purpose of solving the problems of non-performing debts owed to financial institutions and to be consistent with the present economic situation, the Bank of Thailand by virtue of Section 20(4), Section 34 (1) and Section 54(6) of the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business, B.E. 2522 and the additions and amendments, generally extend the permission period to 31 Decrmber 2001, in line with the contents of the Bank of Thailand's notification Ref. BOT. Ngor. (C)4589/1998 Re: the Purchasing or holding shares in limited companies exceeding the legal limits dated 26 November B.E.2541, as follows: 1. For the possessing of commod and preferred shares in limited companies which are the debtors, finace companies, finance and securities companies and credit foncier companies are allowed to hold more than 10 per cent of total shares sold, provided that the shares are possessed by means of debt restructuring in accordance with the regulations by the Bank of Thailand. 2. Finance companies and finance and securities companies are permitted to invest in securities for their own proprietary right in total amount exceeding 60 per cent of their capital fund provided that the excess number of common shares, preferred shares and warrant are possessed by means of debt restructuring in accordance with the regulations by the Bank of Thailand. Credit foncier companies are permitted to hold common shares, preferred shares and debentures in total amount exceeding 20 per cent of their capital fund provided that the excess number of shares are possessed by means of debt restructuring in accordance with the regulations by the Bank of Thailand 3. Finance companies, finance and securities companies and credit foncier companies which hold excess shares as aforesaid shall reduce their shareholding so that the amount of common and preferred shares in limited companies, which are their debtors, does not exceed 10 per cent of total shares sold, total amount of investment in securities that finance companies, finance and securities companies and credit foncier companies invest for their own proprietary right does not exceed 60 per cent of their capital fund and total amount of common shares, preferred shares and debentures in limited companies held by credit foncier companies does not exceed 20 per cent of the capital fund of the credit foncier companies. The reduction of the shares shall be undertaken to comply with these limits as soon as they can do without incurring any losses but no later than 31 December 2004. Finance companies as well as finance and securities companies are required to submit to the Bank of Thailand monthly report concerning the purchasing of holding shares in limited companies as a result of debt restructuring in accordance with the regulations of the Bank of Thailand. The information shall be presented in the form attached herewith and reported separately from the report on the investment in shares in accordance with Section 20(4) and Section 34(1) or finance company Table no.3/5 which finance companies as well as finance and securities companies are currently requires to submit. Credit foncier companies are required to notify the Bank of Thailand in writing when purchasing and holding shares in limited companies, according to this relaxation. Please comply with the above. Yours faithfully (MR. Chatu Mongol Sonakul) Governor Bank of ThailandEnc. Finance Company Table no.3/5 (Detail of Investment in Securities)Financial Institutions Policy Department Tel 283-5878, 283-6877Note [ ] The Bank will hold a meeting to explain the matter on........... [/] There will not be a meeting.