Bursa Malaysia Berhad (“Bursa Malaysia”) has issued a consultation paper seeking public feedback on the proposed amendments to the Rules of Bursa Malaysia Depository Sendirian Berhad (“Bursa Depository”) to facilitate a suite of Central Depository System (“CDS”) eServices for individual depositors.
The features for the new CDS eServices will be offered in 2-stages (i.e. Release 1 and Release 2). Rolled out yesterday, Release 1 allows depositors to perform various depository services via their smartphones such as viewing the balance shareholdings of their direct CDS accounts, accessing monthly statements, updating specific depositors’ particulars and receiving notifications in relation to their shareholdings.
To facilitate the roll-out of Release 2 targeted to be introduced by the end of this year, Bursa Malaysia has issued a consultation paper seeking public feedback on the proposed amendments to the Rules of Bursa Depository to facilitate additional features that will allow individual depositors to perform the following:
- open new CDS accounts;
- subscribe for initial public offerings and rights issue;
- transfer securities between depositors own CDS accounts with the authorised depository agents’ approval;
- reactivate inactive or dormant CDS accounts;
- register for eDividend to receive cash dividends and other cash payments directly into depositor’s bank accounts; and
- make payment online to Bursa Depository for CDS related transactions.
This is in line with Bursa Malaysia’s aspiration to transform customers’ experience and empower individual depositors with easy access to a wide range of depository services anywhere and anytime at their convenience. In addition, this programme also promotes sustainability practices through digitisation and encourages the industry to embrace digital transformation as a whole.
The consultation paper is available at: http://www.bursamalaysia.com/market/regulation/rules/public-consultation/. Interested parties are invited to submit their comments and feedback to Bursa Malaysia by 5 July 2019.
