Comparison Between Direct CDS and Nominees CDS Account



Central Depository System

When opening a trading account with a Stock Broker (Participating Organization or Investment Banks) a CDS account will be opened at the same time. Normally, stock brokers can offer Direct CDS or Nominee CDS Account.

CDS stand for “Central Depository System” and it maintain by Bursa Malaysia Depository Sdn Bhd. Previously it was known as Malaysian Central Depository (“MCD”).

Each CDS account have its own advantage and disadvantage. The table below highlighted the different between the two.

CDS Account
Direct Nominee
Account Name Under shareholder name (eg Mr M) Under broker name ( eg HLG Nominee Tempatan for Mr M)
IPO application Eligible Not eligible
Paperwork on corporate exercise Handle by shareholder Handle by stock broker (upon instruction). Broker may impose fees.
Dividend Send to shareholder Credited to trust account with stock broker
Attending AGM Eligible Not Eligible (Possible but have to get stock broker to appoint as proxy)
Annual Report Mail to shareholder Have to request from broker
Share transfer To own or relative account Only to own account


By looking at the table above, it is clear that Direct CDS account have more advantage when compare to Nominee CDS account. The only advantage of Nominee CDS account is shareholder do not need to worry about paperwork on corporate exercise.


Leave a Comment

  • Yazry Yahya 6th May, 2011, 11:57 pm

    Hi. I already open CDS acc with OSK. Just wanna know, if i open CDS acc with OSK, so i entitle as Direct CDS acc or Nominee CDS acc??

    need help

    Reply
  • 1mdb.com 7th May, 2011, 12:48 am

    Yazry, the best way to check is to ask your broker.

    Reply
  • Marco 8th May, 2011, 12:32 pm

    Anyway to open a CDS account to trade Singapore share?

    Reply
  • 1mdb.com 9th May, 2011, 1:24 am

    Marco, there are a number of Malaysian brokers offer Singapore share trading such as HLeBroking, CIMB & OSK. You have to contact them to enable cross border trading.

    Reply
  • Alfred 2nd July, 2011, 6:32 pm

    hey… may i know what kind of paperwork on corporate exercise needed to be handled for direct account ? thanks.

    Reply