Process of Purchasing Shares in Bursa Malaysia

Process of Purchasing Shares in Bursa Malaysia

  • Submitted By: kennetth
  • Date Submitted: 01/19/2014 6:32 AM
  • Category: Business
  • Words: 278
  • Page: 2
  • Views: 78

Process of purchasing Shares in Bursa Malaysia
1. Open a Central Depository System (CDS) account:
You can do this by approaching an authorized depository agent such as Stockbroking Company and some banks. You will need to provide photocopies of IC (identity card) and a payment of fee RM10. After that, you will receive the account document by mail.

2. Open a trading account with stockbroker:
This will be done simultaneously when you open the CDS account. Therefore, you may need to provide income statement and fill out trading account form. The stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list – in order to qualify you and set your trading limit.

3. Get a remisier:
Normally your stockbroker will appoint one to you if you don’t have any particular preference. The remisier has to be licensed by the Securities Commission, and he will help you make the order to sell or to buy at a certain price.

4. Buying and Selling Shares:
You can key in your order at online system provided by your stockbrokers, or call your remisier to make the order. If your buying order match a selling order, you will get a trade confirmation. The stockbroking firm will then send out contract notes to you specifying details of transaction.

5. Payment: When you buy share of company S, your CDS account will be credited with share S at 9am on T+3 (T=transaction date). The 3 days only include working days. Your payment had to be made on 12.30pm that day. If not, your share will be forced sold at a contra loss or contra gain.

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