FAQs
Activation of Inactive Account
- What is an inactive account?
A CDS account is said to be inactive when there are deposited securities in the CDS account but with no debit or credit entries in the depositor's account for at least thirty-six (36) consecutive months from the date of the last entry made (hereinafter referred to as “Inactive”).
- Why does Bursa Depository designate a CDS account as Inactive?
Bursa Depository is continuously striving to enhance the security of your CDS account. Designating relevant CDS accounts as Inactive will restrict unauthorised transactions.
- What is the effect of my CDS account being designated as Inactive?
Once your CDS account has been designated as Inactive, you may continue to perform all forms of CDS transactions which are available to the depositors except for outward transfers and trade activities.
- What will happen to the securities held in my CDS account after it is designated as Inactive? Your securities will still remain in your CDS account after your account is designated as inactive.
- Can I still use my Inactive account to apply for IPOs or corporate actions? Yes. You may use your Dormant CDS account to apply for IPOs. The same also applies to corporate actions. However, the status of your CDS account will remain Dormant until you reactivate it.
- Will I receive any statement of account after my CDS account is designated Inactive? Yes. Bursa Depository will send the yearly CDS Statement of Account in the month of December after your CDS account is designated as Inactive.
- Will I receive entitlements such as dividends or bonus issues after my CDS account has been designated as Inactive? Yes. If you have met the eligibility to receive entitlements, you will receive such entitlements and entitled securities will be credited into your Inactive CDS account.
- Will I be notified before my CDS account is designated as Inactive? Yes. Bursa Depository will issue you a notice one month prior to the designation of a CDS account to an Inactive status.
- When I receive the notice, what steps may I take to prevent my CDS account from being designated Inactive? If you wish for your CDS account to remain active, you may perform any CDS transaction which involves debit or credit book entry in your account prior to the date of inactivation stated in the notice sent to you.
- Will I be notified again once my CDS account has been designated as Inactive? No. Bursa Depository will only be sending a one-time notice to you one (1) month prior to the date of inactivation. The yearly CDS Statement of Account sent by Bursa Depository will indicate the status of your CDS account as ‘Inactive’.
- If my CDS account is designated Inactive, can I still update my particulars? Yes. You may update your particulars in your CDS account via Bursa Anywhere or by completing the Application for Reactivation of CDS Account form (refer here https://www.bursamalaysia.com/trade/our_products_services/central_depository_system/cds_forms) and submitting it to your ADA/stockbroking company where your Inactive account is maintained.
- How do I reactivate my Inactive CDS account? Individual depositor with Inactive CDS account may use the Bursa Anywhere to reactivate the said CDS account. No reactivation fee will be incurred.
Alternatively, you may complete the Application for Reactivation of CDS Account Form which is available in our corporate website or submit a written request to the ADA/stockbroking company where your CDS account is maintained.
Body corporate depositors must provide either a written request or submit duly completed Application for Reactivation of CDS Account Form signed by its authorised signatory(ies) as prescribed in the board resolution to the ADA/stockbroking company where the CDS account is maintained. - Must I be present before the ADA/stockbroking company to reactivate my Inactive CDS account? No. This is not mandatory.
- How long does it take to reactivate my Inactive CDS account? Reactivating your Inactive CDS account through Bursa Anywhere mobile app will take immediate effect in CDS.
If you opt to perform the reactivation through your ADA/stockbroking company, such request must be activated by your ADA/stockbroking company within two (2) market days from the date of your application. - Will there be a fee for reactivation? No fee is imposed for reactivation.
- Will I be notified after my CDS account has been reactivated? Yes. Bursa Depository will inform you via a notice upon your CDS account has been successfully reactivated.