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Bursa Malaysia and its Group of Companies (³Bursa Malaysia´) reserve all proprietary rights to the contents of this Presentation
Presentation.. No part of this Presentation may be used or
reproduced in any form without the Bursa Malaysia¶s prior written permission. This Presentation is provided for information purp
purposes
oses only. Neither the Bursa Malaysia nor the
Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness
completeness or currency of the contents of this Presentation.
It is your responsibility to verify any information before using or relying on it.
  
Ä Introduction
Ä Legal Framework
Ä Duties of Bursa Malaysia Depository
Ä CDS Users
Ä Account Structure
Ä Difference Between Direct & Indirect CDS Account
Ä Merits For Direct & Indirect CDS Account
Ä Demerits of Direct & Indirect CDS Account
Ä Depositories Services

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Ä Bursa Malaysia Depository Sdn Bhd was established in April 1990

and commenced operations in November 1992

Ä Wholly-owned subsidiary of Bursa Malaysia Berhad

Ä Authorised capital of RM50 million and paid up capital of RM25

million

Ä Completed immobilization of all equities & non-equities securities

listed on the stock exchange in June 1997

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Ä Securities Industry (Central Depositories) Act 1991 {SICDA}.
Ä SICDA empowers the Central Depository to draw up the rules
of Bursa Malaysia Depository and the issuance of any directions.
Ä Bursa Malaysia Depository Nominess Sdn Bhd is deemed as a
bare trustee
Ä Share registrar to issue certificate in the name of Bursa Malaysia
Depository Nominees Sdn Bhd
Ä Undeposited securities not to be traded on stock exchange or
utilised to settle market trade

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Ä Account maintained at client level and must be under the
name of beneficial owner or Authorised Nominees name
name..

Ä Account are tagged with Stock Broker where the account was
opened

Ä Mandatory deposit - 100

100%% immobilisation rate

Ä Transfer of Securities within the ³Approved Reasons to

Transfer´

Ä No Withdrawal of securities

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Ä Authorised Depository Agent (ADA)
Ä Authorised Direct Member (ADM)
Ä Issuer
Ä Issuing house
Ä Share registrar
Ä Account holder / depositor
Ä Clearing House

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‡ Record of Depositors
‡ Corporate Exercise
‡ Allotment Details
‡ Certificate in the name of Bursa Malaysia Depository
Nominees Sdn Bhd

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Ä held directly in the name of individual, corporate body, institutional
investors and etc.
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Ä held in the name of nominees where the beneficial owner details are
captured
Ä one nominee account one beneficial owner
Ä nominees account can only be opened by Authorised Nominees i.e.
bank/ broker/trust companies
Ä Certain relaxation was introduced whereby nominee company can
operate omnibus account effective 21 October 2005.

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Account holder open the account with Depositor open the account with
the Brokers i.e. ADA under his name Custodians Bank or Brokers under the
directly name of a nominee company with the
i.e. depositors as the beneficial owner


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In direct account, the account holder is
the owner of the securities in the CDS
account. The depositor will be
registered as the shareholder
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In indirect account, the nominee
company is the owner of the securities
in the CDS account. The name of the
nominee company will be registered as
the shareholder.
Page 9
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Dividend entitlement will be directly
mailed to the depositor, while
entitlement in shares will be credited
directly to the account
Account opened for its own investment
and deal with securities using this
direct account
Requires supporting documents for
opening of direct CDS account
The depositor is the operator of the
account
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Dividend entitlement will be received
by the nominee company that in turn
will redirect these entitlement to the
beneficial owner
Account opened for the following
purpose :
1. custodian
2. margin or loan facilities purpose
Does not require extensive supporting
document
The nominee company is the operator
of the account
Page 10
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‡ Depositors are in a principal
relationship with Bursa Depository
‡ Confidentiality of depositor
shareholdings is protected whereby
depositor¶s share holding is not
known to third party
‡ The ownership of CDS account is
transparent
‡ The asset of depositor and
stockbroker i.e. ADA is clearly
segregated
‡ Depositor received his/her annual
reports or dividends payout directly
from the registrar/issuer
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‡ Lesser documentation to operated
such account
‡ Do not require to be present in
person to perform depository
transactions
‡ Cost savings to Bursa Depository
arising from the following :
- storage cost due to less
documentation to stored
- postage and other related
stationeries on mailing of
statements/notices as these
notifications are send electronically
to nominee company
Page 11
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‡ The depositors shareholdings is
unaffected in the event the brokers
is declared bankrupt
‡ Depositors received notification
directly from Bursa Depository in the
event of any changes to its account
particulars or movement of
securities
‡ CDS statement of account are
issued directly to the depositor

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‡ More documentation to operate such
account
‡ To be physically present in person to
perform depository related
transactions
‡ Higher operational and maintenance
cost for Bursa Depository :
- storage cost for storing documents
- postage and stationeries cost for
sending out statements and notices
to depositors
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‡ The nominee company is in a
principal relationship with Bursa
Depository and the beneficial owner
details are merely for information
‡ Depositor shareholding is known to
third party
‡ Depositor do not receive any
notification or CDS statement of
account directly from Bursa
Depository
‡ Delay in receiving dividend
entitlement
‡ Does not receive notification or
annual report directly from the Issuer
Page 13
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‡ Incurred additional cost for services
provided by the nominee company
‡ Implication to depositor
shareholdings if the nominee
company is declared bankrupt
‡ Ownership of account is not very
clear.

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Ä Account openings
Ä Deposit of securities
Ä Transfer of securities
Ä Withdrawal of securities
Ä Initial Public Offerings (IPOs)
Ä Corporate exercises

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Ä Balance Enquiry , Enquiry by Name, Enquiry by investor¶s ID
Ä Updating of CDS Account Particulars
Ä Suspension/Release Suspension of Account, particular stock or
certain balances in CDS account
Ä Closing of Account
Ä Consolidation of Statement of Account
Ä Inactive / Dormant Account
Ä Ad--hoc Statement of Account / Monthly Statement
Ad
Ä End of Day Processing will generate notices to be mailed to the
relevant depositor on changes to their account particulars /
suspension/release suspension / changes in their account status

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DEPOSITOR

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Ä Provisional credit is accorded on deposit day itself

Ä Depositor able to utilise the provisional credit for trade settlement

during prescribed period of 1 month

Ä Registrar will authenticate the certificate deposited and revert to

Depository within 7 market days

Ä End of Day processing will generate notices to depositor in event

any deposit is rejected

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DEPOSITOR

DEPOSITOR

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Ä Transfer of securities is real time

Ä Transfer must be within the ³Approved Reasons for Transfer´

Ä Exception reports are generated to monitor transfer in CDS

Ä End of Day Processing will generate notices to the relevant transferor¶s

and transferee¶s

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Withdrawal request Document Registration

DEPOSITOR ADA CD Registrar

Ack. Confirmation
Confirm/
Reject

Withdrawal Notice from

Bursa Malaysia Depository Sdn Bhd

Deliver Certificate in depositor¶s name

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Ä Only permitted for ³Delisted´ securities

Ä Certificate will be issued and mail directly to the depositor within 14

market days by the share registrar

Ä End of processing will generate notices to the relevant depositors on the

successful withdrawal request

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ISSUING BURSA
APPLICANT HOUSE DEPOSITORY
Submit Submit detail of
application successful applicant

Rectify & Verify details

Resubmit no

yes

mail notice of allotment to Credit the

successful applicant ISSUING confirmation
HOUSE applicant¶s
CDS account

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Ä Mandatory to have a CDS account to participate in Initial Public Offerings

Ä Apply an IPO by completing the prescribed Application Form or via

³Electronic Share Application´ (ESA) or via Internet Application

Ä ESA able to apply via Automated Teller machine

Ä CDS account of successful applicant will be credited 2 market days

before listing

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3'$ Provide ROD 6$ will mail entitlement 6$6"&$

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i.e. dividend

for entitlement in shares i.e.

Bonus/Rights, submit details to
Bursa Depository
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no $, -
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yes

mail notice of allotment to

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confirmation successful applicant

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Ä Bursa Depository provide Record of Depositors (ROD) as at book
closure date of a corporate action to issuer/share registrar to ascertain
the entitlement to be distributed

Ä All entitlement in shares to be credited to the depositors account

Ä Dividend is distributed to share holder by the registrar/issuer by mailing

to them or crediting their bank account

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