Do you know that Malaysia now has two types of dividend? In default, listed companies are giving away dividend in cash. But, this kind of scenario has been changed, whereby shareholders are sometimes are given the "share-dividend" instead. Maybank rocks the market last year by purposing a share-dividend plan, in contrary to the usual cash dividend. Then, few listed companies are following the latest trend. Here, let us know more about scheme.
Similar to eDividend, one of the main objectives of implementing e-Share Payment is to promote greater efficiency of the payment system which is aligned to the national agenda of migrating to electronic payment.
It is a service provided by all stockbrokers for the purpose of:
- payment of share sales proceeds by the stockbroker directly into your bank account; and/or
- providing an option for you to initiate payment via e-channels (e.g. Internet banking, mobile banking, ATM) or to authorize the banks where you maintain your bank account to allow the stockbroker to debit your bank account for the purpose of share purchases
Why should shareholders subscribes to the facility?
- Convenience of electronic settlement (eliminates the need to collect and issue cheques);
- It eliminates the need to travel to the bank or stockbroker;
- Funds will be made available in your bank account on the same day (T+3); and
- Incidents or misplaced, lost or expired cheque can be avoided
How do I subscribe?
You must complete the relevant prescribed form and submit it together with the required supporting documents to your stockbroker. Your stockbroker would then verify your particulars and signature and update your payment records accordingly in their system under e-Share Payment.
What supporting documents are required?
When providing your bank account information for e-Share Payment, please bring along the following:
- Copy of MyKad
- Copy of your bank statement / bank saving book / details of your bank account obtained from your bank's website that has been certified by your bank.
Which types of bank accounts are allowed?
Any saving or current accounts are allowed. However, investors can only use one bank account for trade settlement for each trading account maintained with a stockbroker.
Can I provide a separate bank account for each of my trading accounts if I have more than one trading account?
Yes, if the trading accounts are with different stockbrokers.
Is there any transfer limit?
There is NO transfer limit for both crediting of sale proceeds and auto debit. For payment of purchase, the transfer limit via e-channels is set by the individual bank. Please contact your bank in the event you wish to request for a higher transfer limit.
Will the stockbroker charge me?
This facility is offered by the stockbrokers FREE. While the auto debit facility is also offered free, stockbrokers may levy a penalty of up to RM10 if the transaction fails due to insufficient funds in you designated bank account.
Can a payment be made to/from a third party bank account?
Or, my own overseas bank account?
No, it must be under your own name and it is a Malaysian bank offering MEPS IBG service.
Can I cancel or terminate my e-Share Payment facility and how do I go about doing it?
Yes, you can do so by contacting your stockbroker and completing the e-Share Payment termination form.
If I close my stock trading account, will the e-Share Payment facility be automatically terminated?
Source: Bursa Malaysia