BURSA MALAYSIA INTRODUCES NEW eRIGHTS SERVICE FOR INVESTORS
28 Mar 2013
Another Initiative by Bursa Malaysia to Create A More Facilitative Trading Environment
Bursa Malaysia today announced the launch of eRights, bringing greater convenience and ease to investors by facilitating the electronic subscription and payment system when subscribing for Rights issue. As a result, individual shareholders will be able to subscribe for Rights issue via ATM and internet banking facility of participating banks, similar to the current practice for electronic IPO applications via Electronic Share Application (ESA).
Bursa Malaysia also launched the Nominee Rights Subscription (NRS) e-services to facilitate the electronic Rights subscription and payment for nominees companies.
Bursa Malaysia Chief Executive Officer, Dato’ Tajuddin Atan said that eRights is another initiative by Bursa Malaysia to create a more facilitative trading environment. Dato’ Tajuddin said, “We are continuously taking steps to introduce new initiatives for the market with the objective to provide a more facilitative trading environment to attract more investors and Issuers, not only within our domestic market, but also the region.”
With eRights shareholders now have flexibility and mode of choice when applying for rights issue allocation while Issuers will gain from the efficient flow of payments and lower cost due to electronic processing.
“We are determined to elevate our marketplace to firmly position Bursa Malaysia as the leading marketplace in the region. Already we are leading as ASEAN’s Multinational Marketplace1 and other unique and distinct market segments such as Palm Oil and Islamic, which clearly differentiates Bursa Malaysia from other exchanges”, added Dato’ Tajuddin.
Recent initiatives rolled out by Bursa Malaysia include the rule amendments to allow the listing of Business Trust and Foreign Collective Investment Schemes as well as the revamped business rules for securities brokers.
These initiatives are part of Bursa Malaysia’s four Strategic Intents that have been defined as vital enhancement programmes to steer the market to become Asia’s leading marketplace. The four Strategic Intents are Creating a More Facilitative Trading Environment; Facilitate More Tradable Alternatives; Reshape Market Structure and Framework; and Ensuring a Regional Marketplace with Global Access.