Bursa Malaysia Depository Sdn. Bhd., a subsidiary of Bursa Malaysia Berhad, is extending its administration fee waiver of RM10 for the registration of eDividend until 18 April 2012 as part of its continuing effort to encourage more shareholders to sign up for the eDividend service.
The eDividend initiative allows shareholders to receive cash dividends directly into their bank account. The electronic dividend payment system will result in increased convenience and faster access to dividends within a secure environment for shareholders. It eliminates the need for them to visit the bank to deposit dividend cheques which are posted to them, as well as the problem of misplaced, lost or expired cheques. Companies listed on Bursa Malaysia were mandated to effect eDividend payment on cash dividends to all shareholders who have signed up for the eDividend service on any book closure announced from 1 September 2010 onwards.
To date, a total of 296 listed companies had paid their cash dividends via eDividend, involving 343 dividend payouts. An average of 72% of the value of these dividends was paid via electronic payment directly into shareholders' bank accounts. In terms of eDividend registration, almost 100% of nominee companies and 25% of individual shareholders with balances had registered so far.
Shareholders can register for eDividend by completing the eDividend form available from their stock brokers. The form is also available for download at Bursa Malaysia's website (www.bursamalaysia.com).