Bursa Malaysia is planning to launch a new initiative eDividend where in all the public listed companies (PLCs) on Bursa Malaysia that announce a books closing date for cash dividends on or after September 1, 2010 will be required to pay cash dividends to their shareholders by directly crediting such payments into their bank account
Bursa Malaysia said that the paperless dividend payment system will result in increased convenience and faster access to dividends within a secure environment for shareholders. It eliminates the need for them to visit the bank to deposit dividend cheques which are posted to them, as well as the problem of misplaced, lost or expired cheques.
Tan Sri Zarinah Anwar, chairman of the Securities Commission Malaysia (SC), said: “This will provide shareholders greater convenience and faster access to their dividends while PLCs will also benefit with eDividend’s lower cost. This is an important initiative to ensure that the Malaysian capital market continues to be relevant and attractive to investors.”
Dato’ Yusli Mohamed Yusoff, CEO of Bursa Malaysia, said: “Given the convenience that eDividend can offer, Bursa Malaysia looks forward to receiving an encouraging response from shareholders to this initiative. There are currently more than 4 million Central Depository System (CDS) accounts maintained with Bursa Malaysia Depository Sdn Bhd, and I hope to see all these account holders come on board to use this service.”