Securities administration - Malaysia


Income collection

Market Record dateBasis for entitlementStandard interest
calculation rule
Bursa Malaysia-listed instruments:
Payment date minus
2-4 weeks (varies)
Settled positions on
Books Close datea
Not applicable
Debt instruments b
Payment date minus
2-4 weeks (varies)
Settled positions on
Books Close date
SSDS-eligible securities - unlisted instruments
Pre-determined fixed cycleSettled positions on
Books Close date

a. Record date is the same as Books close date.
b. Including ICULS and other loan stocks.

Bursa Malaysia-listed instruments

For income on Bursa Malaysia-listed instruments, issuers or registrars usually mail a cheque to the Malaysian sub-custodian. Depending on the registrar’s location, it is not uncommon for mailed cheques to take up to five business days to reach the sub-custodian. Alternatively, against payment of a small fee, some registrars allow the sub-custodian to physically collect the cheque on payment date for clearing on the same day.

Cheques take another two business days to clear before funds can be credited to the investor’s account (that is, with value clearing date +2).

SSDS-eligible securities - unlisted instruments

Income on SSDS-eligible securities is paid to SSDS account holders on payment date with same-day value via the interbank payment system.

Corporate actions

Bursa Malaysia-listed instruments

Information in corporate event announcements are currently sourced from newspapers, company circulars and the Bursa Malaysia website.

Rightful entitlements are determined based on ex-date but distribution is based on the holdings as registered in the registrar’s Record of Depositors on record date.

A company’s payment dates are usually two to four weeks after books close/record date. The following is the common timeline for corporate actions in Malaysia:

  • Announcement date

    The date on which a corporate action is announced by the company, usually one to two weeks prior to ex-date.
  • Ex-date

    Used to determine entitlements by the market, one clear day before books close date.
  • Books close date / Record date

    The date on which the company closes its register of members either as a legal requirement or to decide benefits due to a member as at a particular date. Thus, entitlements are calculated based on Bursa Depository’s Record of Depositors as at lodgement date (books close date).

Eligibility is based on ex-date but payment is based on books close/record date. In the event of any discrepancies, due, for example, to late settlement of a trade executed on ex-date, the rightfully entitled owner has the right to claim back the difference from the counterparty.

Payment date

Payment date depends on whether the corporate action is voluntary or involuntary and whether it is due from the issuer in cash or in securities, as follows:

 Voluntary corporate actionInvoluntary corporate action
CashUsually between two and four weeks from last acceptance/take-up dateUsually between two and four weeks from Books Close date
SecuritiesUsually within 15 business days from Books Close dateUsually within 15 business days from Books Close date

SSDS-eligible securities - unlisted instruments

The entitlement to participate in an early or partial redemption is based on SSDS end of day positions determined on record date. Record date is the business day preceding redemption date. Redemption proceeds are credited to SSDS accounts on payment date with same-day value.

Organisation of AGM/EGMs

Meeting notices of ordinary resolutions must be sent to registered shareholders at least 14 days prior to the AGM; if the meeting is to decide on special resolutions, the notice must be mailed 21 days in advance of the meeting. In addition, meeting notices are usually given by press publication and in writing to Bursa Malaysia.

Other market specifics

Shares belonging to investors that want to participate in an AGM are not blocked in Bursa Depository but, to be eligible to vote, shareholders must hold the shares for at least 3 business days prior to the voting day. Some companies may base eligibility to vote on Bursa Depository’s Record of Depositors on a specific date.

Most AGM/EGM resolutions are passed by a show of hands. Shareholders must in principle be represented in person but most companies routinely allow shareholders to appoint their bank or the chairman of the meeting as their proxy.