11 th ACG Cross Training Seminar

1. 11th ACG Cross Training Seminar Depository Model 3rd & 4th July 2009 Bursa Malaysia and its Group of Companies (“Bursa Malaysia”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Bursa Malaysia’s prior written permission. This Presentation is provided for information purposes only. Neither the Bursa Malaysia nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it.

2. AGENDA • Introduction • Legal Framework • Duties of Bursa Malaysia Depository • CDS Users • Account Structure • Difference Between Direct & Indirect CDS Account • Merits For Direct & Indirect CDS Account • Demerits of Direct & Indirect CDS Account • Depositories Services Page 2 DEPOSITORY MODEL

3. INTRODUCTION • Bursa Malaysia Depository Sdn Bhd was established in April 1990 and commenced operations in November 1992 • Wholly-owned subsidiary of Bursa Malaysia Berhad • Authorised capital of RM50 million and paid up capital of RM25 million • Completed immobilization of all equities & non-equities securities listed on the stock exchange in June 1997 Page 3 DEPOSITORY MODEL

4. LEGAL FRAMEWORK • Securities Industry (Central Depositories) Act 1991 {SICDA}. • SICDA empowers the Central Depository to draw up the rules • of Bursa Malaysia Depository and the issuance of any directions. • Bursa Malaysia Depository Nominess Sdn Bhd is deemed as a bare trustee • Share registrar to issue certificate in the name of Bursa Malaysia Depository Nominees Sdn Bhd • Undeposited securities not to be traded on stock exchange or utilised to settle market trade Page 4 DEPOSITORY MODEL

5. SALIENT FEATURES IN CDS • Account maintained at client level and must be under the name of beneficial owner or Authorised Nominees name. • Account are tagged with Stock Broker where the account was opened • Mandatory deposit - 100% immobilisation rate • Transfer of Securities within the “Approved Reasons to Transfer” • No Withdrawal of securities Page 5 DEPOSITORY MODEL

6. CDS USERS Provides depository services to the following users through the Central Depository System (CDS):- • Authorised Depository Agent (ADA) • Authorised Direct Member (ADM) • Issuer • Issuing house • Share registrar • Account holder / depositor • Clearing House Page 6 DEPOSITORY MODEL

7. CDS USERS Bursa Malaysia Securities Berhad Bursa Malaysia Securities Clearing Berhad • Record of Depositors • Corporate Exercise • Allotment Details • Certificate in the name of Bursa Malaysia Depository Nominees Sdn Bhd Page 7 DEPOSITORY MODEL

8. ACCOUNT STRUCTURE Direct Account : • held directly in the name of individual, corporate body, institutional investors and etc. Indirect Account : • held in the name of nominees where the beneficial owner details are captured • one nominee account one beneficial owner • nominees account can only be opened by Authorised Nominees i.e. bank/ broker/trust companies • Certain relaxation was introduced whereby nominee company can operate omnibus account effective 21 October 2005. Page 8 DEPOSITORY MODEL

9. DIFFERENCES BETWEEN DIRECT & INDIRECT ACCOUNT Page 9 DEPOSITORY MODEL

10. DIFFERENCES BETWEEN DIRECT & INDIRECT ACCOUNT Page 10 DEPOSITORY MODEL

11. MERITS OF DIRECT & INDIRECT ACCOUNT Page 11 DEPOSITORY MODEL

12. MERITS OF DIRECT & INDIRECT ACCOUNT Page 12 DEPOSITORY MODEL

13. DEMERITS OF DIRECT & INDIRECT ACCOUNT Page 13 DEPOSITORY MODEL

14. DEMERITS OF DIRECT & INDIRECT ACCOUNT Page 14 DEPOSITORY MODEL

15. DEPOSITORY’S SERVICES Core services provided are as follows:- • Account openings • Deposit of securities • Transfer of securities • Withdrawal of securities • Initial Public Offerings (IPOs) • Corporate exercises Page 15 DEPOSITORY MODEL

16. THANK YOU If you need further information or clarification please contact the following: • Zailan Azhar Baharin • Bursa Malaysia Berhad • 2nd Floor, Exchange Square • Bukit Kewangan • 50200 Kuala Lumpur • Tel: 603-2034 7750 • Email: zailan@bursamalaysia.com • Website : www.bursamalaysia.com DEPOSITORY MODEL

17. DEPOSITORY’S SERVICES Opening of Individual & Corporate CDS Accounts DEPOSITORY MODEL

18. DEPOSITORY’S SERVICES • Account Management • Balance Enquiry , Enquiry by Name, Enquiry by investor’s ID • Updating of CDS Account Particulars • Suspension/Release Suspension of Account, particular stock or certain balances in CDS account • Closing of Account • Consolidation of Statement of Account • Inactive / Dormant Account • Ad-hoc Statement of Account / Monthly Statement • End of Day Processing will generate notices to be mailed to the relevant depositor on changes to their account particulars / suspension/release suspension / changes in their account status DEPOSITORY MODEL

19. DEPOSITORY’S SERVICES Deposit – Acceptance and Rejection DEPOSITOR DEPOSITORY MODEL

20. DEPOSITORY’S SERVICES • Deposit of Securities • Provisional credit is accorded on deposit day itself • Depositor able to utilise the provisional credit for trade settlement during prescribed period of 1 month • Registrar will authenticate the certificate deposited and revert to Depository within 7 market days • End of Day processing will generate notices to depositor in event any deposit is rejected DEPOSITORY MODEL

21. DEPOSITORY’S SERVICES Transfer – Acceptance and Rejection DEPOSITOR DEPOSITOR DEPOSITORY MODEL

22. DEPOSITORY’S SERVICES • Transfer of Securities • Transfer of securities is real time • Transfer must be within the “Approved Reasons for Transfer” • Exception reports are generated to monitor transfer in CDS • End of Day Processing will generate notices to the relevant transferor’s and transferee’s DEPOSITORY MODEL

23. Withdrawal of Securities Registrar DEPOSITOR ADA CD Withdrawal request Document Registration Ack. Confirmation Confirm/ Reject Withdrawal Notice from Bursa Malaysia Depository Sdn Bhd Deliver Certificate in depositor’s name DEPOSITORY’S SERVICES DEPOSITORY MODEL

24. DEPOSITORY’S SERVICES • Withdrawal of Securities • Only permitted for “Delisted” securities • Certificate will be issued and mail directly to the depositor within 14 market days by the share registrar • End of processing will generate notices to the relevant depositors on the successful withdrawal request DEPOSITORY MODEL

25. Rectify & Resubmit Initial Public Offerings (IPOs) APPLICANT ISSUING HOUSE ISSUING HOUSE Verify details BURSA DEPOSITORY Submit application Submit detail of successful applicant no yes mail notice of allotment to successful applicant Credit the applicant’s CDS account confirmation DEPOSITORY’S SERVICES DEPOSITORY MODEL

26. DEPOSITORY’S SERVICES • Initial Public Offerings (IPOs) • Mandatory to have a CDS account to participate in Initial Public Offerings • Apply an IPO by completing the prescribed Application Form or via “Electronic Share Application” (ESA) or via Internet Application • ESA able to apply via Automated Teller machine • CDS account of successful applicant will be credited 2 market days before listing DEPOSITORY MODEL

27. Corporate Action Credit into CDS account BURSA DEPOSITORY SHARE REGISTRAR SHARE REGISTRAR Rectify & Resubmit Verify details SHAREHOLDER ACCOUNT HOLDER will mail entitlement i.e. dividend Provide ROD for entitlement in shares i.e. Bonus/Rights, submit details to Bursa Depository no yes mail notice of allotment to successful applicant confirmation DEPOSITORY’S SERVICES DEPOSITORY MODEL

28. DEPOSITORY’S SERVICES • Corporate Action • Bursa Depository provide Record of Depositors (ROD) as at book closure date of a corporate action to issuer/share registrar to ascertain the entitlement to be distributed • All entitlement in shares to be credited to the depositors account • Dividend is distributed to share holder by the registrar/issuer by mailing to them or crediting their bank account DEPOSITORY MODEL