eDividend Made Easy

eDividend Made Easy

The Bursa Malaysia eDividend initiative was recently launched in April 2010. It was designed to facilitate the dividend payout process, making it faster and easier for Bursa Malaysia investors to receive their dividends without the need for cheques. If you’re new to eDividend and a very traditional investor, you may find yourself having more questions than answers when trying to familiarize yourself with it. However, this step-by-step guide adapted from Bursa Malaysia’s eDividend FAQ should prove useful in helping you understand the registration process and justification for eDividend. By the end of this article, you will be able to list out the methods for eDividend registration, the conditions as well as the reasons for registering.

Getting started

Getting started is easy. Registration is free, so all you have to do is provide your bank account information to your Authorised Depository Agent (ADA) (also known as your stock broker). But hurry, do it by 18 April 2011 because if you don’t, you will be charged an administrative fee to enjoy the benefits of eDividend.

Provide your banking information

Download the  registration form at (http://www.bursamalaysia.com/website/bm/trading/downloads/Bursa_Msia_FMN050_eDividend.pdf) or you may get one from any stock broker’s office. Then, submit the completed form (and its relevant documents) to the stock broker’s office where your

account is maintained. If your CDS account is held in the name of a nominee, the nominee will register for the eDividend.

Supporting documents

As an individual depositor, don’t forget to bring your:

• Original documents for verification.
• Two (2) copies of Identification documents i.e. NRIC, Passport, Authority Card or other acceptable identification documents.
• Two (2) copies of (a) your bank statement; OR (b) your bank savings book; OR (c) details of your bank account obtained from your bank’s website that has been certified by your bank; OR (d) letter from your bank confirming your bank account details. (disclose part containing your bank account particulars only).