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 |
walawei! i like lah 🙂