5th January 1999       Source : Bank Negara Malaysia
 

Issues

Clarification - Part 8

37 Computation of the 12-month holding period for shares purchased through rights issues and call warrants. The 12 month period for shares arising out of rights issue and call warrants to start :
  1. from 1 September 1998 if the date of issue/purchase of the rights or call warrants is prior to or on 1 September 1998;
  2. from the date of issue/purchase of the rights or call warrants if the rights or call warrants are issued/purchased after 1 September 1998.
38 Margin financing by stockbroking company to non-residents.
  • Local stockbroking companies continue to be allowed to extend margin financing to nonresidents for the purchase of shares in the KLSE.
  • Lending subject to KLSE’s rules.
39 Payment made by local stockbrokers to local clearing-house on behalf of foreign stockbroker for purchase of shares on the KLSE prior to receiving funds from the foreign stockbroker.
  • Allowed for payment made on behalf of the foreign stockbroker for period of less than 3 working days.
  • Such "out-of-pocket" expenses by local stockbrokers would not be deemed as credit facility to nonresidents
40 Repatriation of profit by nonresidents arising from contra transaction. Nonresidents are freely allowed to convert and repatriate profits arising from contra transactions upon presentation of necessary documentary evidence to the banks.
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