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Bursa Malaysia Berhad (“Bursa Malaysia” or “The Exchange”) and Affin Bank Berhad (“AFFINBANK”) today signed an agreement to offer the market an electronic subscription and payment service for the application of Rights Issue, otherwise known as eRights. The signing of the agreement makes AFFINBANK the second financial institution, to provide investors the convenience of electronic subscription and payment of Rights Issue via the bank’s ATM and internet banking facilities.
Customers of AFFINBANK can now subscribe for Rights Issue electronically at their convenience without the hassle of needing to go to the bank to make an application and payment. Prior to this, all transactions and processing of Rights Issue exercises are carried out manually.
Bursa Malaysia Chief Executive Officer, Dato' Tajuddin Atan said, "We are pleased to have AFFINBANK on board to offer the eRights service to their customers. eRights is one of the several eServices initiatives offered by the Exchange to afford greater convenience and access to investors when applying for Rights Issue. It benefits the investors with a fast and ubiquitous service at their convenience. We applaud AFFINBANK for adopting the eRights and recognising the benefits it brings to their customers. We look forward to seeing greater take up of our eServices by the banks for the benefit of our investors.
The Exchange is also cognisant of the importance in offering greater convenience to the investing public. Technology, specifically the internet has accelerated the speed of information dissemination and response. Therefore, it is imperative for anyone doing business to recognise how critical it is to evolve on manual processes. As such, we will continue to work with market players to look for ways to improve our services and bring new and innovative solutions to the marketplace. This is to ensure the Malaysian capital market continues to remain relevant and attractive to investors and issuers.”
“AFFINBANK is proud to be working together with Bursa Malaysia to offer more convenience to our customers via eRights. We continuously strive to craft and provide innovative financial solutions and services, and we are pleased to have the opportunity to leverage on eRights to provide another valued added service to our customers,” said Kamarul Ariffin Mohd Jamil, Managing Director/Chief Executive Officer of AFFINBANK.
“Customers are internet savvy nowadays and eRights will give them the power and control to subscribe for Rights Issue easily via the Bank's internet banking, affinOnline, or alternatively at our ATMs,” added Kamarul.
Over the past years, Bursa Malaysia has embarked on several digital initiatives aimed at improving our service offering to the market and our end investors. Dubbed eServices, this includes Electronic Share Application (ESA), eDividend, CDS-Straight Through Processing, eRights and eStatement. These initiatives are part of the Exchange’s ongoing efforts to provide a more facilitative trading environment and are in line with our overall drive to make the Exchange a more efficient and effective marketplace.
The eRights service, which was launched on 28 March 2013, is one of Bursa Malaysia’s eServices initiatives in meeting the increasingly sophisticated investors’ demands as well as to ease the investing public effort when subscribing for Rights entitlement. It enables shareholders to subscribe for and make payment for Rights Issue applications via several convenient electronic channels thereby ensuring error-free transactions and greater cost efficiencies.
