The Securities Commission Malaysia (SC), Bank Negara Malaysia and Bursa Malaysia yesterday introduced the Electronic Share Payment facility for share transactions in a further move to promote the use of e-payments in the stock market.
Together with the e-Dividend initiative launched in April this year, the e-Share payment initiative marks another effort towards enhancing efficiency in the payment and settlement systems within the capital market. The two initiatives were announced in the 2010 Budget.
With e-Share payment, share sales proceeds can now be paid by the stockbroker directly into the investors' bank accounts. Investors enjoy faster access to funds as the monies are made available in their bank account on the same day.
For share purchases, investors can initiate payments to their stockbrokers via electronic channels or they may choose to save time and enjoy the convenience of auto-debit by authorising their banker to debit their designated bank account directly.
The e-Share payment facility does away with the need to deposit and collect cheques, and eliminates issues of misplaced, lost or expired cheques. Investors can subscribe to the e-Share payment facility with their respective brokers. The service is provided by all the stockbrokers at no charge.
The e-Share payment initiative is jointly undertaken by the SC, Bank Negara Malaysia, Bursa Malaysia, the Association of Stockbroking Companies Malaysia, the Asssociation of Banks Malaysia and Malaysian Electronic Payment System.