eDividend is a service which allows an issuer to electronically pay your cash dividend and other cash distribution directly into your bank account instead of making payment via bank cheques.
As a depositor, you have to provide your bank account information to Bursa Depository.
You can start providing your bank account information to your Authorised Depository Agent (ADA) (referred to in this FAQ as your "stock broker") from 19 April 2010 onwards. The sooner you provide your bank account information, the sooner you will be able to benefit from the advantages of eDividend.
Bursa Malaysia Depository Sdn Bhd will waive the administrative fee of RM10.00 that will be imposed on existing CDS account holders who register for eDividend on or after 19 April 2012. The fee waiver is for a period of one (1) year, from 19 April 2012 to 18 April 2013.
No. You will not incur any charges for receiving eDividend.
You must complete the relevant prescribed form and submit it together with the required supporting documents at your stock broker's office where your CDS account is maintained.
Note: If you are unable to be present at the stock broker's office, the signing of the relevant prescribed form and the supporting documents must be witnessed by an acceptable witness specified by Bursa Depository. An acceptable witness includes an Authorised Officer of your stock broker, a Dealer's representative, a notary public, or an authorised officer of Malaysian Embassy/High Commission. Once signed accordingly, the document should be submitted to your stock broker.
If you are an individual depositor, when providing your bank account information for eDividend, bring along:-
If you are a corporate depositor, you are required to submit the following documents when providing your bank account details:-
You are allowed to provide the details of existing active savings or current accounts maintained with a local bank that is under your name or in the case of a joint account, has your name as one of the accountholders.
No, you must provide details of a bank account maintained with a financial institution that are offering Inter-Bank GIRO (IBG) service. A current list of IBG members can be located via the following website http://www.myclear.org.my/faqs/interbank-giro-faqs/. Please refer to question number 2 in the FAQ.
Yes, you are allowed to change your bank account details by submitting the relevant prescribed form together with the relevant supporting documents substantiating your request to your stock broker. There will be no cost charged to you for changing or updating your bank account details.
If you have not provided your bank account information, you will not be able to benefit from receiving your dividends in a timely, effective and efficient manner. You will then be paid your cash dividend entitlements through an existing manner as authorised under the issuer's Articles of Association.
All listed issuers who announce a books closing date for dividend entitlements on or after 1 September 2010 are required to pay dividends via eDividend to their shareholders who have provided their bank account information to Bursa Depository. Listed issuers who announce a books closing date for cash distributions on or after 2 January 2013 are also required to pay their cash distributions via eDividend to their shareholders who have provided their bank account information to Bursa Depository.
Dividends or cash distribution entitlements will be paid by the issuer on the payment date. Generally, your cash entitlement will be credited into your bank account within the same day of payment depending on your bank's processes.
Your bank account details and other related information:
If the dividend or cash distribution payments cannot be credited into your bank account based on the bank account information you provided (for example due to an incorrect bank account number, a closed bank account or an inactive bank account), you will be contacted by Bursa Depository to validate your bank account details with your stock brokers. Arrangements will be made by the issuer to pay dividends or cash distribution using an existing manner as authorised under the issuer's Articles of Association.
Bursa Depository will send a confirmation by posting a computer generated notice to your correspondence address as specified in your CDS account details. The confirmation will also include your bank account information which you have provided in the relevant prescribed form for providing your bank account information, for verification.
Yes, you will continue to receive your tax voucher so long as it is required under the law.
Yes, you will be notified electronically once the listed issuer has paid the dividend out of its account if you have provided your email address. You are also encouraged to provide your mobile phone number for SMS notification, which will be provided at the discretion of the listed issuers. Nevertheless you will still receive your tax vouchers as long as the law requires it.
No, you are not allowed to discontinue receiving dividends via eDividend once you have provided your bank account information for the purposes of eDividend.
If your CDS account is held in the name of a nominee, the depositor entitled to provide the bank account information for eDividend will be the nominee.
If you want all dividend and cash distribution payments arising from shares held in your CDS accounts to be credited into the same bank account, you can request for consolidation of all of your CDS accounts for dividend payment at the point of providing your bank account information for eDividend.
You can also opt to assign different bank accounts for each of your CDS accounts. In this case, you will need to provide your bank account information separately for each of the CDS accounts at the respective stock brokers where your CDS accounts are maintained.
No, once you have provided your bank account information for eDividend and opted for consolidation, your bank account details under your existing CDS accounts will be automatically assigned to your new CDS account.
However, if you had provided your bank account information for eDividend and had not opted for the consolidation feature, you will need to provide your bank account information every time you open a new CDS account.
Yes, however you will need to decide and assign only one bank account to receive all the dividend payment arising from shares held in all your various CDS accounts. You will be able to perform the consolidation at the stock broker's office where you maintain a CDS account that your bank account has been assigned for the purpose of eDividend.
Yes, you will still be required to provide your bank account information to your stock broker.
Yes, if you are a Malaysian citizen, permanent resident of Malaysia or a Malaysian incorporated or registered entity. When you open a new CDS account, in addition to the CDS account opening form, you are also required to provide your bank account information by completing the eDividend form at the same time. This means that you will be able to receive eDividend from 1 September 2010 onwards on any new CDS account.