The Securities Commission Malaysia (SC), Bank Negara Malaysia and Bursa Malaysia recently introduced the Electronic Share Payment facility (e-share) for share transactions.
e-Share Payment is a service provided by all stockbrokers to pay the share sales proceeds directly into your bank account as well as providing an option for you to initiate payment for share purchases via electronic fund transfers. e-Share Payment eliminates the need to bank-in the cheques received from the sale of shares and also enable you to make online payments anytime from the comfort of your home.
Similar to eDividend launched in April this year, one of the main objectives of implementing e-Share Payment is to promote greater efficiency of the payment system which is aligned to the national agenda of migrating to electronic payment.
Below are list of Frequently Ask Question (FAQs) regarding e-share Payment.
1. What is e-Share Payment?
e-Share Payment is an electronic settlement facility provided by all stockbrokers for the purpose of:
- payment of share sales proceeds by the stockbroker directly into your bank account; and / or
- providing an option for you to initiate payment via e-channels (e.g. internet banking, mobile banking, ATM etc) or to authorise the banks where you maintain your bank account to allow the stockbroker to debit your bank account (auto debit) for the purpose of share purchases.
2. Which stockbrokers are participating in the e-Share Payment initiative?
All stockbrokers are participating in this initiative.
3. Why should I subscribe to the e-Share Payment facility?
You will enjoy the various benefits the e-Share Payment facility provides, which are as follows:
- Convenience of electronic settlement (eliminates the need to collect and issue cheques);
- It eliminates the need to travel to the bank or stockbroker;
- Funds will be made available in your bank account on the same day (T+3);
- Incidents of misplaced, lost or expired cheques can be avoided.
4. How do I subscribe to the e-Share Payment facility?
You must complete the relevant prescribed form and submit it together with the required supporting documents to your stockbroker. Your stockbroker would then verify your particulars and signature and update your payment records accordingly in their system under e-Share Payment.
5. What supporting documents are required?
When providing your bank account information for e-Share Payment, please bring along the following:
- Copy of Identification documents e.g. NRIC, Passport, Authority Card or other acceptable identification documents (for individual investors).
- Certified true copy of Certificate of Incorporation / Certificate of Registration (for corporate investors).
- Copy of your bank statement / bank savings book / details of your bank account obtained from your bank’s website that has been certified by your bank / copy of the letter from your bank confirming your bank account details.
- Original documents of all the above mentioned for verification.
6. Which types of bank accounts are allowed to enjoy e-Share Payment?
Savings or current accounts are allowed. However, investors can only use one bank account for trade settlement for each trading account maintained with a
stockbroker.
7. Is there any transfer limit on the e-Share Payment facility?
There is no transfer limit for both crediting of sale proceeds and auto debit. For payment of purchase, the transfer limit via e-channels is set by the individual bank(s). Please contact your bank(s) in the event you wish to request for a higher transfer limit.
8. Will the stockbroker charge me for using e-Share Payment?
The e-Share Payment facility is offered by the stockbrokers at no charge. While the auto debit facility is also offered free, stockbrokers may levy a penalty of up to RM10 if the transaction fails due to insufficient funds in your designated bank account.
9. Who should I contact if I need further information in relation to e-Share Payment?
You are advised to contact your stockbroker.
More information can be found in Bursa Malaysia webpage.