Bursa Malaysia expands its eDividen facility to inline with national agenda
Malaysia’s exchange holding company, Bursa Malaysia Berhad (“Bursa Malaysia”) has extended its eDividend facility to include all types of cash payments made by listed issuers to their securities holders, such cash payments include payments of interest or profit rates on debt securities or sukuk, income distribution by Real Estate Investment Trust (REIT) or Exchange Traded Fund (ETF) and capital repayment.
eDividend is a service which allows an issuer to electronically pay cash dividend entitlements directly into securities holders’ bank account instead of making payment via bank cheques. Currently 80 per cent of the total dividend payments are paid via eDividend.
“The expansion of the electronic payment to other types of cash payments by listed issuers is aligned to our national agenda of migrating to electronic payment systems that expedite the crediting of cash payments for corporate exercises and reducing the cost associated with the issuance of cheques by listed issuers,” said Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia.
eDividen Payment Flow (Source: Bursa Malaysia)
by Terry Brown
