S’wak CDS account holders urged to adopt eDividend

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KUCHING: Some 150,000 of Sarawak’s Central Depository System’s (CDS) account holders maintained with Bursa Malaysia Depository Sdn Bhd (Bursa Depository) are encouraged to sign up for the eDividend scheme according to Bursa Malaysia Bhd (Bursa Malaysia) chief operating officer (COO) Omar Merican.

eDIVIDEND REGISTRATION: A schematic showing the registration process involved in Bursa Malaysia’s eDividend system. (SOURCE: Bursa Malaysia)

eDIVIDEND REGISTRATION: A schematic showing the registration process involved in Bursa Malaysia’s eDividend system. (SOURCE: Bursa Malaysia)

The enrollment will allow shareholders to receive cash dividends paid directly into their bank accounts from public listed companies (PLCs) with eDividend.

Apart from faster access to dividends which would be credited directly to the bank accounts, shareholders would benefit from better account management with the option to consolidate the dividends from all CDS accounts into one bank account.

Shareholders who wished to enroll for the scheme need to provide their bank account information via an eDividend form to Bursa Depository within the one-year grace period of April 19, 2010 onwards to enjoy a waiver of the RM10 administrative fee.

In addition, this also translates to a one-off provision of bank account details for all listed issuers on Bursa Malaysia.

However, once shareholders have registered for the eDividend scheme they are not allowed to revert back to the issuance of cheques.

For the financial year ended 2009, to date, a total of 253 PLCs paid out RM18.8 billion in total dividends.

CDS cccount holders who need more information on the eDividend scheme can refer to www.bursamalaysia.com.