Kuala Lumpur Stock Exchange: Streamlined Processes For Securities Transfer By MCD

Kuala Lumpur Stock Exchange (KLSE) wishes to announce that its central depository, Malaysian Central Depository Sdn Bhd (MCD), in its efforts to meet the changing needs of its depositors will introduce enhanced processes in the handling of securities transfer requests, which will come into effect on Monday, 30 December 2002. The changes introduced by MCD will ensure a more efficient processing of transfer requests in the Central Depository System (CDS).

The following are some of the changes affecting depositors in particular:

1. The current 10 Approved Reasons for Transfer has been reclassified into two broad categories:
   1. Transfers that result in no change in beneficial ownership of securities- When the name of the beneficial owner is transparent and identical at both the securities account of the transferor (the person who initiates the transfer) and transferee (the person who receives the transferred securities).
   2. Transfers that result in change in beneficial ownership of securities - This covers scenarios such as transfers:
      • pursuant to General Offer,
      • between family members,
      • arising from pledging of securities,
      • involving Government Authorities,
      • that require prior approval of MCD.
   For more details on all the different types of scenarios, depositors may refer to their respective Authorised Depository Agents (ADAs) and Authorised Direct Members (ADMs).
2. Depositors will have a longer time to submit their duly completed transfer requests with their respective ADAs / ADMs as the submission time has been extended from 12.00 pm to 3.00 pm.
3. The new term "Transfer" has replaced the term "Ordinary Transfer" across all CDS reports, CDS account statements, notices etc.

MCD will continue to send notices to depositors informing them of any debit or credit entries in their CDS accounts arising from transfers. These transfer transactions will also be reflected in the monthly Statement of Account to depositors.

The changes introduced by MCD are part of the ongoing review of processes and operations, to further enhance efficiency in the capital market.