Failure to comply

• Sell-out
  If you fail to pay for the shares you buy before 12.30pm on T+3, your stockbroker will force sell or “sell-out” the shares. Since it will be done at their discretion on the fourth day or T+4, you will be at the disadvantage. If your shares are sold at a price lower than your purchase price, you will have to bear this loss, in addition to all the expenses incurred in the sell-out exercise.

• Buying-in
  Buying-in is an action instituted by the Bursa Malaysia if there are insufficient shares in your CDS account on T+2 at 12.30pm. Essentially, buying-in is a way to replace the securities you failed to deliver on time.

However, if you have the impression that buying-in is an easy way out for you when you don’t have sufficient shares, think again. The exchange will “buy-in” the shares at 10 bids higher than the last done price of the shares (refer minimum bids table). For instance, if the last done price for the shares is RM10 per share, the minimum bid will be RM0.10 per share. Therefore the price of the buying-in will be 10 bids higher at RM11 per share. If initially you sold your shares at RM10 per share, you will need to pay the differences (before transaction costs) of RM1.00 per share. In addition, any losses, costs and expenses arising from the buying-in process will also be borne by you.