1. What is Share Margin Financing?

Share Margin Financing is a credit facility granted to eligible individuals or corporations to finance the purchase of shares listed on Bursa Malaysia and/or redemption of all or any Outstanding Balance in Margin Accounts of customer held with other Participating Organisations or persons or entities approved or licensed to provide financing under any written law in Malaysia and the subsequent transfers of the securities collateral/ margin Accounts to the Participating Organisation.

2. Who is eligible to apply?

Our Share Margin Financing is available to all eligible Malaysians and Residents who are of good financial standing.

3. What is the minimum facility limit?

Minimum facility limit is *RM100,000

 *Note: Subject to the Bank’s approval. The approved facility limit will depend on your financial standing and the type and quality of collateral to be pledged.

4. What are the acceptable collateral?

Cash and/or *quoted shares listed on Bursa Malaysia which are marginable/ acceptable to the Bank. You may check with our SMF Sales Representatives on the list of marginable shares.

 *Note: We accept third party pledged shares subject to proper relationship declaration and documentation submitted by the third party pledgor.

5. What is the capping on share collateral?

Type of Counter

Share Valuation (Capped)

FBM100

100% (up to maximum value of RM10)

Non-FBM100

(market capitalization of more than RM500 million)

90% (up to maximum value of RM6)

Non-FBM100

(market capitalization of less than RM500 million)

80% (up to maximum value of RM6)

ACE

50% up to a max value of RM0.70

Loan Stocks and Warrants

0% - for maturity date in the current year

20% - for maturity date less than 3 years from

the current year

50% - for maturity date more than 3 years from the current year

PN17 & Designated Counters

Zero value


*The above valuations are subject to revision from time to time

6. How is trading limit prescribed?

At any points in time, the actual amount of trading limit available is subject to the capped value given to the equity (and cash, if any) in your margin account or the approved facility limit, whichever is lower.

 You are required to maintain the Approved Equity Ratio at all times.  Calculation of the Equity Ratio  is as follows:-

 Equity Value (Pledged shares + purchases) + Cash collateral (if any) X 100

                                       Outstanding loan

7. How do I carry out trade transaction?

You may call our designated dealer’s representative for the latest available trading limit and give buy or sell trade instruction.

 

8. What happen when there is a margin call made?

Margin call occurs when the equity ratio is below the Approved Equity Ratio (AER) but above the force selling ratio. You will be given 3 market days from the date of the margin call letter to rectify the margin breach by pledging additional collateral or selling down the securities to bring equity ratio to at least the AER; failing which the Bank is entitled to exercise its right to dispose the securities collateral to bring the equity ratio to at least the AER on T+4 (T=date of margin breached).

 Where a margin call has already been made but the equity ratio further deteriorated to forceselling level, another margin letter will be issued during the same day requiring you to rectify your position immediately failing which a force selling will be carried out immediately by the Bank without further reference to you.

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9. How do I apply for Share Margin Financing?

Please click on the button below to fill up your contact details. We shall contact you and advise on the documents required for margin application.