Electronic Share Payment - ESP

Transcription

1 Frequently Asked Questions (FAQ) Electronic Share Payment - ESP Table of Contents 1. What is Electronic Share Payment? Is this service optional to the Client? Is this service available to all equity Clients? How can the Client subscribe to this ESP service? Can the Client register more than one bank account for this service? What type of bank account is allowed for ESP subscription? How long will it take for the e-payment service to be activated? Are there any special conditions with this e-payment service that Client shall be aware of? Are there any charges or fees imposed by OSK for this service? How does e-payment works? For e-payment, when can Client expect the money to be credited into the Client s designated bank account? What are the possible circumstances which may lead to failure of e-payment transaction? How will Client be paid in the event of failed e-payment transaction? Can the Client request to change the designated bank account after activation of e- Payment service? Can Client request for ad hoc sale proceeds cheque issuance after activation of e- Payment service? If yes, can Dealer s Representative request for ad hoc sale proceeds cheque on behalf of Client? Can the Client revoke e-payment service? If yes, can Dealer s Representative request to revoke the service on behalf of the Client? If the Client has signed up for Auto Trust Payment (ATP) service, can he/she sign up for ESP service? Can OSK make any revisions to the ESP service or terms & conditions? Where can Client find more information about e-share Payment?... 5 FAQ (ESP) v2.1.doc Page 1 of 5

2 Frequently Asked Questions (FAQ) Electronic Share Payment - ESP 1. What is Electronic Share Payment? Electronic Share Payment ( ESP ) is an optional service offered by OSK Investment Bank Berhad ( OSK ) to its equities trading Clients which allows direct crediting or debiting of payment to or from client s designated bank account. Among the options available under ESP service are: a) e-payment. An option to facilitate auto-crediting of payment (sale proceeds and contra gains) into the Client s designated bank account on T+3. b) e-collection. An option to facilitate auto-debiting of collection (purchase settlement, contra losses and debit notes) from the Client s designated bank account on T+3. At present, OSK will only introduce e-payment option to its Clients. 2. Is this service optional to the Client? Yes. This is an optional service provided to the Client upon subscription of ESP service. 3. Is this service available to all equity Clients? No. This service is available to individual and corporate trading Clients with settlement of outstanding purchases and sale proceeds denominated in MYR currency only. It is not available to margin, institutional Clients and contracts settled in foreign currency. 4. How can the Client subscribe to this ESP service? The Client can subscribe to ESP service by completing the ESP Form and submit to his/her Dealer s Representative together with the following supporting documents: i. Identification documents e.g. NRIC, Passport, Authority Card or other acceptable identification documents (for individual trading Clients); or ii. Certified Certificate of Incorporation / Certificate of Registration (for corporate trading Clients); and iii. Designated bank account statement / bank savings book / details of bank account obtained from bank s website which has been certified by the bank / confirmation letter on bank account details. iv. Original documents of the abovementioned for verification. 5. Can the Client register more than one bank account for this service? No. The Client can register only one (1) bank account for each equity trading account he/she has with OSK. FAQ (ESP) v2.1.doc Page 2 of 5

3 6. What type of bank account is allowed for ESP subscription? The Client can subscribe to ESP service using his/her savings or current account held with a financial institution that offers MEPS IBG service. While joint bank account is allowed, it is NOT encouraged and the trading client must be the primary holder of the joint bank account. It is the Client s responsibility to ensure he/she is the primary bank account holder to avoid payment failure. For list of financial institutions that offer MEPS IBG service, please refer to MEPS s website ( 7. How long will it take for the e-payment service to be activated? OSK will endeavor to activate the e-payment service by one (1) business day. For the avoidance of doubt, business day shall mean a day where OSK is open for business in Kuala Lumpur. 8. Are there any special conditions with this e-payment service that Client shall be aware of? Yes. There are 2 conditions that the Client should be aware of: a) While Bursa Malaysia indicates that there is no transfer limit for bank accounts, as far as OSK is concerned, only payment above RM100 will be auto-credited into the Client s designated bank account. Any payment of RM100 or less will be credited into the Client s Trust Account with OSK automatically. b) If there is any outstanding purchase(s) on the crediting day (T+3), the payment will be autocredited into the Client s Trust Account instead of the designated bank account. Note: The Client can use the balance in his/her Trust Account to settle any outstanding purchase(s) or the Client can choose to withdraw the balance by submitting a Trust Withdrawal Form to his/her Dealer s Representative. 9. Are there any charges or fees imposed by OSK for this service? No. This is an added service which is offered to OSK s Clients without any fees/charges. 10. How does e-payment works? To allow better understanding of e-payment, please refer to the scenarios below: (*For ease of reference, all computations illustrated below do not include any fees or charges.) Scenario 1: Client A sold off 1,000 units of ABC stock at RM1,200 on T-day and there is a contra gain of RM1,000 on T+1 day. On T+3 day, OSK automatically credits RM2,200 into Client A s designated bank account. 14 June (Mon), T-day 15 June (Tues), T+1 day 17 June (Thurs), T+3 day Client A sold off 1000 units of ABC stock at RM1,200 Client A contra off other shares and earned a contra gain of RM1,000 OSK credits RM2,200 into Client A s bank account. FAQ (ESP) v2.1.doc Page 3 of 5

4 Scenario 2: Client B has RM2,000 in his Trust Account. He sold off 1000 units of ABC stock at RM2,000 and bought 2000 units of DEF stock at RM4,000 on T-day. On T+3 day, OSK automatically credits RM2,000 into Client B s Trust Account as there are outstanding purchases of RM4, June (Mon), T-day Trust Account balance = RM2, June (Thurs), T+3 day Trust Account balance = RM4,000 Client B sold off 1000 units of ABC stock at RM2, 000 and, bought 2000 units of DEF stock at RM4,000 OSK credits RM2,000 into Client B s Trust Account Note: Sale proceeds will be credited into Client s Trust Account if there is any outstanding share purchase(s). 11. For e-payment, when can Client expect the money to be credited into the Client s designated bank account? Payments from OSK will be credited by client s designated bank into his / her bank account by midnight on T+3; the actual timing may vary depending on the day end processing of Client s designated bank. 12. What are the possible circumstances which may lead to failure of e-payment transaction? While it is unlikely to happen, e-payment transaction may fail under the following circumstances, (not exhaustive): a) Unmatched details of the Client s bank account (e.g. wrong bank account number given by the Client) b) Unmatched details of Client s NRIC / Passport no. maintained with OSKIB and Client s designated bank account c) Unaccepted status of the Client s bank account (e.g. dormant bank account) d) Unexpected system breakdown / technical problems 13. How will Client be paid in the event of failed e-payment transaction? In the event of failed transaction upon confirmation from OSK s bank on T pm, the sale proceeds will be automatically credited into the Client s Trust Account on T Can the Client request to change the designated bank account after activation of e- Payment service? Yes. The Client may change the designated bank account by completing the ESP Form, with details of the new designated bank account and submit to his/her Dealer s Representative together with a verified photocopy of the new designated bank account s latest statement or passbook. FAQ (ESP) v2.1.doc Page 4 of 5

5 15. Can Client request for ad hoc sale proceeds cheque issuance after activation of e- Payment service? If yes, can Dealer s Representative request for ad hoc sale proceeds cheque on behalf of Client? Yes. The Client can complete the Ad Hoc Sale Proceeds Request Form for ad hoc sale proceeds cheque and submit to the Credit Control and Supervision Department at the supervisory branch before T pm. The Dealer s Representative may submit the request on behalf of Client. 16. Can the Client revoke e-payment service? If yes, can Dealer s Representative request to revoke the service on behalf of the Client? Yes. The Client may revoke this service by submitting the ESP Form to his/her Dealer s Representative at any time. Alternatively, the Dealer s Representative may also submit the ESP Form on behalf of Client upon the instructions of the Client. 17. If the Client has signed up for Auto Trust Payment (ATP) service, can he/she sign up for ESP service? No. Client is only allowed to select either ONE of these services offered by OSK. If the Client chooses to sign up for ESP, his/her previous ATP service subscription will be revoked automatically upon activation of the ESP service. 18. Can OSK make any revisions to the ESP service or terms & conditions? Yes. OSK may revise, amend, vary and/or modify the ESP service and its terms and conditions at any time, without assigning any reasons and without any prior notice. 19. Where can Client find more information about e-share Payment? For more information about e-share Payment, client can refer to Bursa Malaysia s website ( FAQ (ESP) v2.1.doc Page 5 of 5