During the period from 1 December 1998 to 1 June 1999, the SC received a total of 43,502 applications involving some 200,000 share scrips for 600 million units of shares. The 600 million units of shares accounted for 60% of the initial 1 billion unit of shares that were transferred to the Minister of Finance's legal custody at the outset.
Section 29 of the Securities Industry (Central Depositories) (Amendment) (No. 2) Act 1998 required investors to deposit their scrips with the Malaysian Central Depository (MCD) by 1 December 1998, and those who failed to do so had recourse through the SC who was given the power under the law to receive share recovery applications for a six-month period i.e. from 1 December 1998 until 1 June 1999.
To-date, critical information on all applications have been keyed into a specially designed electronic database system - the Share Recovery System (SRS). All the share certificates have been batched (i.e. sorted according to stock counters) and sent to the respective share registrars by the SRU. The share registrars have reverted with notices confirming the validity of nearly 90% of the estimated 200,000 share certificates sent.
The SC had issued payment requests for approximately 95% of the applications. However, the SRU estimates that only half of the applicants have reverted with payment and indemnity letters.
Once the SRU receives payment and an indemnity letter from the applicant and is satisfied with all documents and information submitted, the application will be approved. Subsequently, the SRU will instruct the MCD to credit the applicant's CDS account. To-date, MCD has been requested to credit shares for 15,303 or 41% of successful applications while another 2,550 are in the process of being approved.
Of the total number of applications received by SRU, almost 3,745 are incomplete and are currently awaiting further documents from applicants. The SRU is doing its best to request applicants to provide adequate documentation in order to complete its processing.
In addition, about 2,000 applications were closed for reasons such as submission of share certificates of unlisted companies or companies listed on exchanges other than KLSE; loan stocks which have expired before 1 December 1998 and share certificates which are found to be invalid by share registrars. All such share certificates have been returned to the respective applicants.
Under the Securities Industry (Central Depository) Act 1991, once the appeal period of six months lapses on 1 June 1999, the Minister of Finance is accorded discretion to deal with those shares for which a claim has not been made to the SC by 1 June 1999.
All applications received after the 1 June 1999 deadline are dealt with by the Accountant General's Department. Members of the public may contact the Accountant General's Department at:
Jabatan Akauntan Negara (Accountant General's Office)
Seksyen Pengurusan Sekuriti (Securities Management Section)
4th Floor, 8th Block
Kompleks Pejabat-pejabat Kerajaan
Jalan Duta, 50592 Kuala Lumpur
Tel: 03-6517022 ext 1417
Members of the public who wish to check the status of their applications with the SC may do so through:
Share Recovery Unit
Securities Commission
3, Persiaran Bukit Kiara
Bukit Kiara
50490 Kuala Lumpur
