Most liquid, freely-traded SET- and mai-listed shares can be considered as collateral for a stock loan in Thailand — but eligibility is decided case by case, not from a fixed approved list. What we weigh on every ticker is the same: free float, average daily trading value, market capitalisation, sector, shareholder concentration, and whether the holding sits on the local board, the foreign board, or is held as NVDRs. Large-cap SET50 and SET100 names tend to qualify most readily and on the strongest terms; thinly-traded or tightly-held shares can still work, but usually at a more conservative loan-to-value.
The honest answer for any specific holding is: send us the ticker and the position size, and we will tell you.
Key takeaways
- There is no fixed approved list — eligibility is decided case by case on the actual ticker.
- Large-cap SET50 and SET100 names tend to qualify most readily and on the strongest terms.
- mai and smaller SET names can still work, usually at a more conservative loan-to-value rather than an outright "no".
- Board and form matter — local-board, foreign-board and NVDR holdings behave differently as collateral.
- Thin float, low trading value, extreme concentration, or a regulatory flag are what tend to disqualify a ticker or reduce the LTV.
What we look at
- Free float — how much of the company actually trades in public hands, not how much is locked up with insiders.
- Average daily trading value (ADTV) — whether the market is deep enough to absorb the position if collateral ever has to be realised.
- Market capitalisation — larger, well-followed companies are easier to value and hedge.
- Sector — cyclical, single-commodity, or event-driven sectors carry more price risk than diversified ones.
- Shareholder concentration — how much of the float a single holder or family controls, and how that interacts with disclosure.
- Board and form — local board, foreign board, or NVDR, each of which behaves differently as collateral.
Why eligibility is assessed, not listed
A stock loan is secured lending. The lender advances cash against shares and relies on those shares retaining enough value, and enough liquidity, to protect the loan if it is ever unwound. That makes the quality of the collateral the central question — and the quality of a Thai-listed share is not captured by its name or its index membership alone. Two companies of similar size can present very differently once you look at how much of their stock trades, who holds the rest, and how the price behaves under stress. Rather than publish a static list that would be wrong the moment a stock's liquidity shifts, we run each candidate through the same set of factors and size the loan to what the collateral can genuinely support.
The factors that drive eligibility
Free float
Free float is the proportion of a company's shares held by the investing public rather than locked up with founders, controlling families, strategic investors, or the state. It matters because float is what gives a share a reliable, observable market price and the ability to be traded in size. A company can have a large headline market capitalisation while only a small slice genuinely changes hands; that gap is exactly where collateral risk hides. A healthy free float supports a firmer valuation and a more comfortable loan-to-value. A very thin float pulls in the opposite direction.
Average daily trading value
ADTV measures how much of a stock, in baht terms, trades on a typical day. It is the practical test of whether a position could be realised in an orderly way rather than crashing the price on the way out. A position that represents a few days of normal volume is straightforward; a position that represents many weeks of volume is not, regardless of how good the company is. Low ADTV does not automatically disqualify a holding, but it lowers the LTV a lender can prudently extend, because the exit is harder.
Market capitalisation
Larger companies tend to be better researched, more widely held, and easier to value and hedge. Size also correlates with resilience: a large-cap is less likely to gap violently on a single piece of news. This is why SET50 and SET100 constituents are the natural core of stock-loan collateral. It does not mean smaller companies are excluded — only that size is one input among several, and that smaller names are sized more conservatively.
Sector
Some sectors are inherently steadier collateral than others. Diversified consumer, banking, and large utility names tend to have more stable, more predictable price behaviour. Single-commodity producers, early-stage growth companies, and businesses exposed to one regulatory decision carry sharper, more sudden price risk. Sector does not decide eligibility on its own, but it shapes how much cushion a lender wants between the loan and the collateral value.
Shareholder concentration
Concentration cuts two ways. The whole point of a stock loan is to finance a concentrated founder or major holding, so a large single position is expected, not a problem in itself. What matters is how that concentration interacts with the rest of the register and with disclosure. A holding large enough that selling it would move the market, or that sits near a reporting threshold under the Securities and Exchange Act B.E. 2535, should be structured and sized with that in mind. Whether a holding sits near a reporting threshold under the Securities and Exchange Act B.E. 2535 is a matter for your own Thai legal counsel, engaged in parallel; we act as arranger and introducer and do not provide legal or regulatory advice.
Board and form: local, foreign, and NVDR
The same company can be held in three different ways in Thailand, and they are not interchangeable as collateral. Shares on the local board, shares on the foreign board (available to non-Thai holders once a company's foreign limit allows), and NVDRs — Non-Voting Depositary Receipts that track the economics of a share without conferring voting rights — each have different liquidity, different pricing dynamics, and different mechanics on enforcement. Which form your holding takes directly affects what is possible. We cover this in depth in how foreigners borrow against Thai shares and NVDRs.
SET50 and SET100 large-caps versus mai growth names
At one end of the spectrum sit the large, liquid index constituents — SET50 and SET100 banks, energy and utility groups, large consumer and property names. These are the easiest shares to support: deep float, high ADTV, broad analyst coverage, and stable price behaviour. They typically qualify readily and on the most favourable terms.
At the other end sit growth companies on the Market for Alternative Investment (mai) and smaller SET names. These can absolutely back a stock loan — many of our clients are founders of exactly these businesses — but their thinner float and lower trading value mean a lender builds in more cushion. The result is usually a workable loan at a more conservative LTV rather than an outright "no". The right question is never simply "is this stock eligible?" but "on what terms, given how it trades?"
| Characteristic | SET50 / SET100 large-caps | mai and smaller SET names |
|---|---|---|
| Free float | Deep | Thinner |
| Trading value (ADTV) | High | Lower |
| Lender cushion / LTV | Most favourable terms | More cushion, more conservative LTV |
| Typical outcome | Qualify readily | Workable loan rather than an outright "no" |
What tends to disqualify a ticker or reduce LTV
A holding is more likely to be declined, or sized down sharply, when one or more of the following is present:
- A very thin free float — so little public stock that there is no reliable market price to lend against.
- Very low ADTV — the position would take far too long to realise in an orderly way.
- Extreme single-stock concentration relative to the float, so any movement of the collateral would itself move the price.
- Regulatory flags — suspension, a trading halt, a designated-securities marking, a turnaround or non-compliance status, or a pending event that clouds valuation.
- High, idiosyncratic volatility — a price that gaps on single news items, leaving little margin between loan and collateral.
| Factor | Effect |
|---|---|
| Very thin free float | No reliable market price to lend against. |
| Very low ADTV | The position would take far too long to realise in an orderly way. |
| Extreme single-stock concentration | Any movement of the collateral would itself move the price. |
| Regulatory flags | A suspension, trading halt, designated-securities marking, turnaround or non-compliance status, or a pending event clouds valuation. |
| High, idiosyncratic volatility | A price that gaps on single news items leaves little margin between loan and collateral. |
None of these are necessarily permanent. A stock that is unsuitable today because of a trading halt or a near-term event may be perfectly financeable once the picture clears. This is one reason eligibility is a conversation rather than a verdict.
How to check your specific ticker
The factors above explain how eligibility is reasoned, but no general article can price a specific holding — that needs the actual ticker, the size of your position, the board or form it is held in, and your objective. When you share those details, a principal reviews the live free float, trading value, and concentration picture, checks for any regulatory flags, and comes back with a clear read: whether the share qualifies and, if so, the indicative LTV and structure. To understand how that LTV is then derived, read how much you can borrow against Thai shares. Our process runs from confidential enquiry to funding with a single principal throughout, and the glossary defines the terms used here.
Frequently asked questions
01Do SET50 stocks always qualify?
02Can I borrow against mai-listed shares?
03Can NVDRs be used as collateral?
04What disqualifies a Thai stock?
This article is general information about share-backed financing in Thailand and is not legal, tax, or financial advice. Eligibility and terms depend on the specific share, position, and prevailing market conditions. Confirm your own position with qualified Thai counsel before acting.