Bursa Malaysia has enhanced its e Cash Payments framework by extending its eDividend facility to contain all kinds of cash payments made by listed issuers to their securities holders.
According to an estimate, currently 80% of the total dividend payments received by securities holders are made through eDividend.
Bursa Malaysia chief executive officer Dato’ Tajuddin Atan said that the bank will promote greater efficiency in distributing cash payments arising from corporate actions by listed issuers.
"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," Atan added.
Under the eCash Payment gateway, listed issuers are now required to pay specified types of cash payments as prescribed by the exchange, by directly crediting the same into the bank accounts of their securities holders who have provided their bank account details to Bursa Depository.
Cash payments comprise 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.
Securities holders, who have not provided their bank account details to Bursa Depository to receive their cash payments by way of direct credit into their bank accounts are encouraged to do so through their stockbrokers and be eligible to enjoy the administration fee waiver accorded by Bursa Malaysia, valid until 18 April 2013.