FAQs
Corporate Action
- Can I use an authorised nominee account to apply for an IPO?
No. The authorised nominee account is opened by the ADA/stockbroking company's nominee company and is effectively owned and operated by the ADA/stockbroking company on behalf of its clients.
If you are an individual applicant, you must use your own individual CDS account to apply for an IPO. Use of margin account is not allowed for applying an IPO.
- How is my entitlement from a corporate action determined?
Whenever a corporate action is announced by the relevant issuer, Bursa Depository will provide the ROD as of the lodgment date of the corporate action to the Issuer or the Share Registrar of the issuer. The ROD contains information on the CDS account holders and the number of securities to their credit as at the lodgment date.
Based on this information, the issuer will determine the entitlement of each of its shareholder and instruct Bursa Depository to credit the relevant CDS accounts with the appropriate number of securities.
- When will my CDS account be credited with securities arising from corporate actions, i.e. Rights Issue, Bonus Issue, etc?
These securities will be credited into your CDS account on the eve of the listing of the underlying securities on the stock exchange or on any other date as instructed by the relevant authorities.
- Can I request for the underlying securities due to myself, arising from a corporate action exercise to be issued in the form of certificates?
No. As prescribed under Section 38 of the Securities Industry (Central Depositories) Act 1991 (“SICDA”), securities owing to you as a result of any corporate exercise will be credited into your CDS account. There will be no issuance of physical certificates.
- Can I subscribe for my corporate exercise entitlements electronically?
Yes. Individual shareholder can submit his application for the following corporate exercises electronically via Bursa Anywhere mobile app:
a) Rights Issues;
b) Dividend Reinvestment; or
c) Acceptance of General Offer.Shareholders of nominee companies can also subscribe for the above corporate exercises electronically via the Nominees Rights Subscription Service (“NRS”).
*Note: The above corporate exercises facility will be available to the shareholders subject to the issuer appointing Bursa Depository to facilitate the service for their corporate exercise.