newbie here, I'm trying to decide which kind of CDS account i'm going to open.
I'm choosing between M+ and Rakuten and I got to know that Rakuten only provides nominee CDS account.
So the difference between Direct and Nominee CDS account is nominee accounts can't be use to request for IPO and corporate exercise paperwork is managed by the broker (with a fee).
May I know what kind of paperwork are we talking about here? Is it hard to manage by individuals? Can it be done online etc?

Yes, nominee account all manage by broker (with fee)

Rakuten doesnt charge a fee for corporate exercises n dividends.

thanks guys for the reply.
I am thinking of opening a direct CDS account but I am not sure if I can handle the paperwork on my own. So I am tying to figure out what are the paperworks normally required and is it manageable by individuals?
May I know what kind of paperwork work is usually required for corporate exercise? does it involve filling up forms, mailing stuff? or I can do it online through broker website/email?

Not much paperwork leh...
Just fill up some documents if company doing some corporate dealing with involved shareholders....

I remember sending few pages of documentation for delisting... Fill up form if u want dividend To be paid in shares... Etc.

Mail them to the share registrar...

I prefer direct. If you use nominee account, your dividend is delayed. You won't get dividend tax invoice and cannot go to AGM (unless you ask your broker).

Corporate exercise is rare. It's usually rights issue, dividend reinvestment plan (DRIP) or conversion of warrants.

I only know for DRIPs. They will send you a physical form by mail like this:



Here, CIMB gives shareholders the option to receive cash dividend, reinvest dividends to get shares at cheaper price or both.

You just need to fill it, pay RM10 setem hasil and mail it back to the address.

Note: You must mail the letter in time. Sometimes the letter arrives late and you have to call them.

to add on, now for DRIP, registrar Tricor can do it via online, i.e. duopharma , but cimb is under registrar boardroom they are still not yet catch up, with peer pressure all registrars need to offer an online option down the road

If you are aiming for Bursa just pick CDS. If you are aiming for overseas stocks custodian. Simple.

thanks everyone for the reply!
On point! These clear out my doubts.

Lucky u ask here..
Some don't bother ask & go open nominee account... Got trapped

Another point to note is that with a direct CDS account, you can move your shares from one broker to the other very conveniently through the Bursa app now.
If you bought under a nominee account, it is not transferable. You have to liquidate your shares and buy through another broker.

Can those paperwork all done online?

Don't think so. But someone in this thread mention yes.
I don't think you can because you need to pay setem hasil and sign on it.

For dividend reinvestment plans (DRPs) undertaken by TIIH (Tricor Investor and Issuing House), the paperwork can be done online.
Just register for an account with TIIH at http://tiih.online, it takes only a day to activate and once there is a corporate exercise for any of the companies it manages, it will be listed on the portal and you can simply subscribe to those exercises and pay online. It's easy.

Only applicable for companies that appointed TIIH.

This post has been edited by Jordy: Nov 7 2019, 09:07 AM

thanks for sharing! something to take note of.

Not correct.

If u hold under nominee u still own the shares, it's just parked under a nominee name for administrative purposes.

I give u example. EPF is one of the big shareholders in Maybank. Please look up the recent Maybank announcement when EPF buys (or sell). If u read announcement, u will see that EPF hold Maybank shares under Citibank Nominee. U mean EPF doesn't hold the shares? Obviously it does.

As a nominee account u can still vote at AGM, only the process is more complicated than if u hold direct account.u need to make arrangements with the nominee well in advanced. If direct, u can just walk in.

This post has been edited by Cubalagi: Nov 8 2019, 02:25 AM

hmm, means every time got paperwork have to go and cop the rm10 hasil thing?

like that easier if use rakuten right, since everything settled for u.

I have yet to receive dividend in my direct acc. Previous dividend all paid into nominee account.

Is there any additional work to do to receive dividend using direct account? Or auto credit into my trading account?

It will go to your bank account directly.

GORENG = Nominee, cheaper fees, you wont attend AGM etc.

Long run uncle like me = CDS because i like to attend AGM and get free gifts. no need to ask for proxy form, and hell why proxy when im the shareholder ?

Newbie here as well.....

Therefore, it is recommended to open an direct cds (M+) instead of nominee cds (rakuten)

Direct

Yes, Im using M+, direct CDS. Actually I don't really care direct or nominee since I don't hold stocks for long (i.e generally not more than 2 years), but the low fees form M+ actually attracted me. If you want to open up an M+ account can let me know. I can ask the processing team to reach you out directly. Processing is fast and foc.

Source: http://nomoneylah.com/2019/06/30/stock-trading-account/

Bro, thanks alot.... Yeah I'm interested in the M+online and I noticed their nearest branch is at SS2 (which is where I'm staying)... Really appreciate if you could introduce someone who could reach me directly as my schedule is quite pack during weekday (believe we need to go to the nearest branch, meeting up for account creation)

Yeah I read that info as well, it is very informative and thanks!

You may reach out the following page and get your things registered and the PIC will reach out to you for documents to be executed.

https://klse.i3investor.com/jsp/partner/my/mplus.jsp

mplus account in klang valley need open in branch? Or can open like online like rakuten? Without needed to go branch

Need to go to branch.

i just submit online.
seem everthing upload there, ic/bank statmeent/ bank in rm 11 for cds account.
they said will approve within a month

This post has been edited by tiongkeat: Jun 1 2020, 09:34 AM

Maybe this is new process for MCO. Last year still has to go to branch. 1 month is damn long tho..

yaya meantime i use rakuten lol

If buying oversea stock cannot use direct CDS?

How do I transfer my portfolio from Rakuten to M+?

Nope. CDS only for Malaysian stock.
Overseas stock is always custodian.

If you want those direct you need to fly there open account with their local brokerage or mail them the the opening form /email them if they allow email.

i see, i got it now. So if buy malaysia stock and overseas stock, we will need both CDS and custodian.

Hi, I am interested,can I have the contact of the processing team?

Hi, PM-ed you the name and contact number of the PIC. That PIC is my relationship manager, so I guess to share his contact # with you (or anyone interested) personally.

p/s I've been using M+ for years and their app is really easy to use in my view.

I have HLeBroking nominee account, but planning to open M+ Direct Account for IPO application.
My worries is how to handle the Paperwork on Corporate Exercise, will the M+ inform me when action needed? Is it complex to handle?

How do you open a direct CDS account? Can you do it online?

a year ago you cannot apply online, but now you are in luck because bursa anywhere just added this feature recently, just download the bursa anywhere app and apply. But best if you go to any broker you like to open an account and cds together, because you still need a broker to trade anyway.

Hi all..newbie here as well..is this the mplus that you guys mentioned?
https://mplusonline.com/

Last time back in 2018 I subscribe rights issue for a company called CWG. It will done online through Public Bank website. I can’t recall if need to pay RM10 stamp fee.

Direct CDS is always better if you are an investor.

Hi which brokerage is cheapest for direct CDS transactions, especially those low value ones.. I just want to buy the minimum lot so I can be called shareholder for those companies, and the one in using is not cheap...

Nominee CDS platforms like Rakuten and FSMOne are super cheap.. FSM currently almost free to trade, but I don't have direct share ownership.

Thanks for advice!

Thanks for raising the doubt, it is also my doubt as well. It seems opening a Direct Account is more beneficial, in my eyes as a firstimer. The only drawback is the need to handle the Paperwork.
Can I know what is involved in the paperwork process? Is dealing with the paperwork on a regular basis, or it can be avoided?

hi, i have cds account with rakuten. do i need to open another cds account if i want invest via maybank or can use same cds account?

Yes, because Rakuten one is nominee CDS. Cannot do IPO.

With a direct CDS account, is there any service fee incurred by registrar for each cash dividend payout?
Nominee account there is a service fee charged by broker.

what do you mean exactly?
Dividend payout to shareholders= there are always no fee involved (regardless of direct/nominee) . but nominee u get it a few days later
Dividend reinvestment plan = Yes, direct CDS it's RM10+rm3. however, nominee holding like rakuten seems to be FOC

This post has been edited by kucingfight: Apr 14 2022, 11:55 AM

is there any fee for withdrawing the dividend back to our bank account?

ur talking on nominee right. by right no fees
direct cds: div straight banked in to ur acc on payment date

yeah nominee, thank you for the info

Just curious, how long usually need to wait before application for shares in MITI MySAHAM is approved?

Hi, I'm newbie here. I want to start register direct cds. Should I register with bursa anywhere or Malacca securities?

Bursa anywhere juz apps tag wit CDS. 1st register CDS at nearest n
convenience Investment bank.

This post has been edited by felixmask: May 3 2022, 04:20 PM

Wonder if there is any nomination form provided where somebody can inherit the Shares in the event the shareholder passed away?

None from Bursa. If you want to safeguard the inheritance of your shares after you have passed away, you'll require a will (your shares will be part of your estate).

While waiting for others with better experience to comment, attached PDF is Bursa Malaysia's SOP on dealing with the shares of a CDS account holder in the event of death/bankruptcy.

This post has been edited by DragonReine: May 9 2022, 04:55 PM


Attached File(s)
 Chapter_8.pdf ( 232.07k ) Number of downloads: 53

Thanks for the reply, it would have been nice if there is some sort of nomination form like EPF which simplify the inheritance proces haha

My first trade is using maybank cash share trade acc. all my trades are using mbb trade app.
Last week i opened up a direct cds acc tru bursa app and chosen maybank as my ADA.
Now i have both nominee and direct acc. But how do i buy shares with my direct cds using maybank trade app now? Seems the apps only have nominee registered. Ive tried linking my cds with maybank acc. Nothing shows up on the trade platform for direct cds. Planing to transfer all shares to direct cds account.

Yes Maybank Cash share trade account is a nominee and since you want to close it just close it and transfer it to your direct CDS account

anybody opened direct cds with maybank recently? the online brokerage now is 0.15% with minimum rm12. is that correct?

previously i think it was 0.1% with minimum rm8. or i kena con?

It seems like the rights of beneficial shareholders do differ depending on jurisdiction.

In the U.S., laws clearly define the true owner of the share is beneficial owner, thus retaining the right to vote.

Brokers or financial institutions that act as custodians have legal obligations to keep the record of beneficial owners of securities.

Laws clearly stated that the nominee has to do as the beneficial owner instructs.

Beneficial owner cast his vote via proxy voting either online, by phone or mail.

Holding shares in nominee account allow easy transaction while retaining owner’s right.

https://www.sec.gov/spotlight/proxyprocess/...votingbrief.htm

Things do differ when it comes to UK & Singapore.

Nominee shareholders are the legal shareholders on record, thus only they have the rights to vote.

If you own the share via nominee account, you don’t have the rights to vote.

You have to pay extra to hold share directly in your name in central depository system to have the right to vote.

In Malaysia, the right of shareholder via nominee account relies on how reliable the broker is as our laws do not protect the right of shareholder as U.S. laws do.

How do these differing laws affect us?

If you only buy shares in one region, you only have to remember that region’s law.

If you have access to multiple markets via Interactive Brokers, your rights differ depending on which exchange you buy the share.

In short, via IBKR, you have full voting right as the owner of U.S. share but zero voting right as owner of Singapore share, for example.

That’s why there is no need to pay for CDS fee if you open an account in U.S. broker.

Will I have the right to vote on my U.S. share if I buy share via Rakuten Trade?

I don’t actually know as it is not regulated in U.S. unlike IBKR.

As IBKR is regulated in U.S., you will certainly have the right to vote as the owner of U.S. share.