Opening of Account (2024)

Central Depository System (“CDS”) is a system that is fully owned and operated by Bursa Malaysia Depository Sdn Bhd (“Bursa Depository”), which provides central book keeping of securities and facilitates the settlement of securities transactions in a scripless manner.

Investors who wish to trade in securities listed on Bursa Malaysia Securities Berhad must open accounts on CDS. Securities bought or sold will be credited or debited into CDS accounts of depositors accordingly.

The CDS account may be opened by:

1. An individual who has reached the age of eighteen (18) years as of the application date;
2. A corporation within the context of Section 3 of the Companies Act 2016 including a limited liability partnership within the meaning of Section 2 of the Limited Liability Partnerships Act 2012;
3. Any corporate body that is incorporated within Malaysia and is by notice published in the Gazette, declared as a public authority or an instrumentality or agency of the Government of Malaysia or of any Malaysian State;
4. A society under any written law relating to co-operative societies;
5. A trustee or trust corporation duly constituted under any written law;
6. Any society registered under the Societies Act 1966; or
7. Statutory bodies incorporated under an Act of Parliament.

In general, a CDS account can only be opened if the person is opening it either as a beneficial owner or as an authorised nominee*.

*Authorised nominee means a person who is authorised to act as a nominee as specified in accordance with the schedule prescribed under part VIII of the Rules of Bursa Malaysia Depository Sdn. Bhd.

You can open a CDS account with any Authorised Depository Agents (“ADAs”). Allstockbroking companies in Malaysia are currently ADAs. You may locate the contact details of thehead offices of all ADAs/stockbroking companies at the Bursa Malaysia website. https://www.bursamalaysia.com/trade/trading_resources/brokers_for_equities/list_of_participating_organisations

If you are an individual investor, you may visit an ADA/stockbroking company of your choice and:

1. Complete the CDS Account Form (referhere https://www.bursamalaysia.com/trade/our_products_services/central_depository_system/cds_forms);
2. For Malaysians, to submit the CDS Account Form together with two (2) certified true copies of your Malaysian National Registration Identity Card (“NRIC”). As for foreigners, to submittwo (2) certified true copies of your valid passport; and
3. Pay the CDS account opening fee.

Alternatively, you may submit your CDS accountopening request via Bursa Anywhere mobile application (“Bursa Anywhere”) by completing the electronic account opening form, and selecting your preferred ADA/stockbroking company. However, this service is currently offered to Malaysians with MyKad only.

If you are a corporate investor, you are required to:

1. Complete the CDS Account Form;
2. Submit the CDS Account Form togetherwith two (2) certified true copies of all necessary supporting documents (e.g. certificateof incorporation, board resolution, list of authorised signatures, etc); and
3. Pay the CDS account opening fee.

Your ADA/stockbroking company will then openthe CDS account and furnish you with a CDS account number. Bursa Depository will notify you via the account opening confirmation notice.

Prior to executing any securities trades, youare required to open a trading account with a stockbroking company as well as maintain a CDS account with ADA/stockbroking company.

You must open a CDS account with ADA/stockbroking company if you wish to trade in securities listed in Bursa Malaysia.

In the event that you had applied for Initial Public Offering (“IPO”) without a CDS account before December 2003 and was successful in your IPO application, Bursa Depository would have opened a CDS account on your behalf with the ADA of your choice. Bursa Depository would have informedyou of the CDS account and the need for you to formalise the opening of the CDS account by submitting the relevant documents required as well as paying the account opening fee. The CDS account cannot be dealt with until all these formalities are complied with.

Individual investors may submit their application to open CDS accounts with their preferred ADA/stockbroking company via Bursa Anywhere. The individual investor must then upload the required supporting documents via the electronic platform and pay the required CDS account opening fee via Paynet’s FPX payment gateway.

(For more information on Bursa Anywhere Mobile Application, please refer to https://www.bursamarketplace.com/anywhere/asset-doc/faq.pdf )

Pursuant to Rule 25.01 (1A) of the Rules of Bursa Malaysia Depository, it is mandatory for an individual to be present in person before the ADA if he intends to open or formalise a securities account. In the event that he is unable to do so, the ADA may be pursuant to Rule 5.02A (2) expressly waive the requirement to be present in person. The ADA may instead permit the investor to submit the relevant account opening form (available at all ADAs) and present his documents for verification in front of any of the following people who are also required to witness or certify the supporting documents:

1. Dealer's representative.
2. Authorised Officer of an ADA.
3. Authorised Officer of an Exempt Dealer.
4. Authorised Officer of a Malaysian Embassy/High Commission Consulate.
5. Notary Public (in the absence of a Notary Public in applicant's country, the authorized officers of a licensed stockbroking company or the lawyers* of that country may be allowed to verify).
6. Others as approved by Bursa Malaysia Depository.

* an advocate/solicitor or barrister admitted to the recognised Bar council of the respective country.