Regulated Short Selling (RSS) On Bursa Malaysia



Bursa

Basically, short selling means that investors sell a share without first having it. Short selling is a technique used by investors to profit from the falling price of an overpriced market.

In Bursa Malaysia, short selling is regulated under Regulated Short Selling (RSS) and Securities Borrowing and Lending (SBL) guidelines, which introduced to the market on 3rd January 2007. Prior to 2006, short selling was banned for about 8 years.

RSS means that investors sell a share without first having it, but they have to borrow it from the Central Lending Agency (CLA). CLA is an agency managed by Bursa Clearing where all lending and borrowing are taking place. Investors don’t deal directly with the CLA, but they have to go through the approved Participating Organisation (PO) or investment bank.

For those who have excess shares, you may lend it to the CLA and earn some fees.

1. How to participate in RSS?

Investor who wishes to participate in RSS must open a designated RSS trading account with a PO. All short selling transactions are to be executed through a RSS Account.

Prior to executing RSS, investors must first borrow the stocks from the CLA through the approved PO. Investors have to pay a fee and placing sufficient collaterals for borrowing.

Upon successfully borrowed the required stock, RSS will be executed by dealers at PO after receiving instruction from the investors. The order price must be higher than the last traded price of the relevant stocks. This is known as the ‘up-tick rule‘.

2. Which stocks are approved for RSS

Currently, there are 100 stocks are approved by Bursa Malaysia for RSS. Please refer to table 1 below.

The stocks were approved based on the following criteria,

  • average daily market capitalisation must exceed RM500 million for the preceding 3 months
  • at least 50 million shares in public float
  • average monthly traded volume must exceed 1 million units for the preceding 12 calendar months

List of approved stocks for RSS is updated every 6 months.

3. Suspension of RSS

Total short position of an approved stocks is limited to 10% of the total number of the shares. When the limit reach, RSS activities on that stocks will be suspended for 4 market days.

4. More informations

For further information kindly refer to Regulated Short Selling (RSS) Guidelines by

Table 1 : Approved Regulated Short Selling (RSS) Stock as of 1st August 2011.

No Stock Code Stock Name
1 5185 AFFIN HOLDINGS BERHAD
2 5099 AIRASIA BERHAD
3 5115 ALAM MARITIM RESOURCES BERHAD
4 2488 ALLIANCE FINANCIAL GROUP BERHAD
5 1015 AMMB HOLDINGS BERHAD
6 6888 AXIATA GROUP BERHAD
7 3395 BERJAYA CORPORATION BERHAD
8 1562 BERJAYA SPORTS TOTO BERHAD
9 5258 BIMB HOLDINGS BERHAD
10 2771 BOUSTEAD HOLDINGS BERHAD
11 1818 BURSA MALAYSIA BERHAD
12 1023 CIMB GROUP HOLDINGS BERHAD
13 5071 COASTAL CONTRACTS BHD
14 5141 DAYANG ENTERPRISE HOLDINGS BERHAD
15 7277 DIALOG GROUP BERHAD
16 1619 DRB-HICOM BERHAD
17 3417 EASTERN & ORIENTAL BERHAD
18 2143 ECM LIBRA FINANCIAL GROUP BERHAD
19 8877 EKOVEST BERHAD
20 5101 EVERGREEN FIBREBOARD BERHAD
21 1368 FABER GROUP BERHAD
22 5398 GAMUDA BERHAD
23 3182 GENTING BERHAD
24 4715 GENTING MALAYSIA BERHAD
25 2291 GENTING PLANTATIONS BERHAD
26 5102 GUAN CHONG BERHAD
27 1503 GUOCOLAND (MALAYSIA) BERHAD
28 5138 HAP SENG PLANTATIONS HOLDINGS BERHAD
29 6238 HOCK SENG LEE BERHAD
30 5819 HONG LEONG BANK BERHAD
31 1597 IGB CORPORATION BERHAD
32 3336 IJM CORPORATION BERHAD
33 5215 IJM LAND BERHAD
34 1961 IOI CORPORATION BERHAD
35 5161 JCY INTERNATIONAL BERHAD
36 5122 KENCANA PETROLEUM BERHAD
37 3492 KFC HOLDINGS (MALAYSIA) BERHAD
38 3522 KIAN JOO CAN FACTORY BERHAD
39 5060 KINSTEEL BHD
40 9466 KKB ENGINEERING BERHAD
41 5089 KLCC PROPERTY HOLDINGS BERHAD
42 5878 KPJ HEALTHCARE BERHAD
43 2445 KUALA LUMPUR KEPONG BERHAD
44 5097 KURNIA ASIA BERHAD
45 3794 LAFARGE MALAYAN CEMENT BHD
46 1643 LANDMARKS BERHAD
47 7064 LATEXX PARTNERS BERHAD
48 2011 LINGUI DEVELOPMENTS BERHAD
49 4235 LION INDUSTRIES CORPORATION BERHAD
50 8583 MAH SING GROUP BERHAD
51 1155 MALAYAN BANKING BERHAD
52 5014 MALAYSIA AIRPORTS HOLDINGS BERHAD
53 1171 MALAYSIA BUILDING SOCIETY BERHAD
54 3786 MALAYSIAN AIRLINE SYSTEM BERHAD
55 1651 MALAYSIAN RESOURCES CORPORATION BERHAD
56 5166 MASTERSKILL EDUCATION GROUP BERHAD
57 6012 MAXIS BERHAD
58 5090 MEDIA CHINESE INTERNATIONAL LIMITED
59 4502 MEDIA PRIMA BERHAD
60 3816 MISC BERHAD
61 2194 MMC CORPORATION BERHAD
62 5085 MUDAJAYA GROUP BERHAD
63 5703 MUHIBBAH ENGINEERING (M) BHD
64 3905 MULPHA INTERNATIONAL BERHAD
65 3859 MULTI-PURPOSE HOLDINGS BERHAD
66 5053 OSK HOLDINGS BERHAD
67 5657 PARKSON HOLDINGS BERHAD
68 6033 PETRONAS GAS BERHAD
69 4634 POS MALAYSIA BERHAD
70 4065 PPB GROUP BERHAD
71 8869 PRESS METAL BERHAD
72 1295 PUBLIC BANK BERHAD (inc. Public Bank – F)
73 7084 QL RESOURCES BERHAD
74 9415 QSR BRANDS BHD
75 1066 RHB CAPITAL BERHAD
76 8664 S P SETIA BERHAD
77 8575 SAPURACREST PETROLEUM BERHAD
78 9792 SEG INTERNATIONAL BHD
79 4197 SIME DARBY BERHAD
80 4308 SUNWAY HOLDINGS BERHAD
81 7106 SUPERMAX CORPORATION BERHAD
82 4898 TA ENTERPRISE BERHAD
83 5158 TA GLOBAL BERHAD
84 1589 TEBRAU TEGUH BERHAD
85 4863 TELEKOM MALAYSIA BERHAD
86 5347 TENAGA NASIONAL BHD
87 5112 TH PLANTATIONS BERHAD
88 5031 TIME DOTCOM BERHAD
89 7113 TOP GLOVE CORPORATION BHD
90 4804 TRADEWINDS CORPORATION BERHAD
91 5148 UEM LAND HOLDINGS BERHAD
92 4588 UMW HOLDINGS BERHAD
93 5005 UNISEM (M) BERHAD
94 5142 WAH SEONG CORPORATION BERHAD
95 9679 WCT BERHAD
96 4243 WTK HOLDINGS BERHAD
97 4677 YTL CORPORATION BERHAD
98 0009 YTL E-SOLUTIONS BERHAD
99 2577 YTL LAND & DEVELOPMENT BERHAD
100 6742 YTL POWER INTERNATIONAL BHD


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  • tradetountrade trader 3rd December, 2011, 1:58 pm

    walawei! i like lah 🙂

    Reply