Securities scrips transferred to the Minister of Finance securities account as of 1 December: Recovery through the SC

Kuala Lumpur, 28 November 1998

Investors who have not deposited their securities scrips into the Malaysian Central Depository (pursuant to section 29 of the Securities Industries (Central Depositories) (Amendment) (No 2) Act 1998 (SICDA) or failed to transfer their existing CDS securities into the account of the beneficial owner or authorised nominees (pursuant to section 30 of SICDA) by 1 December 1998 will find their securities, by operation of law, transferred to the Minister of Finance's securities account after 12.30pm on that date.

Investors can recover ownership of their shares by making an application to the Share Recovery Unit (SRU) of the Securities Commission (SC) which will be established on 1 December 1998.

A person who has failed to deposit physical scrips by 1 December 1998 may make such an application if he:

has lost the certificates or they have been stolen;
was away from Malaysia between 1 November 1998 and 1 December 1998;
has scrips that belong to a deceased person; or
has scrips which are subject to a court dispute.

All other reasons will be considered on a case by case basis. Further guidance will be given by the SC on how other categories of cases would be treated as and when the need arises.

The SC wishes to assure affected members of the public that it is a policy of the government that the securities which have been transferred to the securities account of the Minister of Finance will not be disposed of for at least one year from 1 December 1998. These securities may also be held for such further period as may be necessary.

In the event that the Minister of Finance exercises his discretion to dispose of the securities, such moneys received shall be held in trust for affected investors in perpetuity with the Registrar of Unclaimed Moneys.

The mandatory deposit of securities scrips and transfer of securities into an authorised nominee or beneficiary account was introduced by the government through amendments to SICDA which were prescribed by the Minister of Finance with the intention of meeting two key objectives in order to restore market confidence viz.

to ensure an orderly and fair market in the trading of Malaysian securities; and
to improve overall market transparency in the Malaysian capital market

Application procedures under section 29 and 30 of the Securities Industries (Central Depositories) (Amendment) (No.2) Act 1998

All persons who wish to apply to the SC for the recovery of securities must submit the standard forms and enclose supporting documents before their applications can be considered.

These standard forms will be available from 2.00 p.m on 1 December 1998 on the SC Homepage at http://www.sc.com.my, the Corporate Affairs Department of the SC, all share registrars, stockbroking companies and licensed institutions. Claimants may also call the SC at 03-2507629 or e-mail: [email protected] to obtain those forms.

Specific supporting documents are required for the different categories of applications. A checklist on specific documents required will be attached to the standard forms. All duly completed forms must be accompanied by the relevant supporting documentation and submitted to:

The Share Recovery Unit (SRU)
No. 3, Persiaran Bukit Kiara,
Bukit Kiara
50490 Kuala Lumpur.
Tel: 03-2536130 / 2536132
Fax: 03-2536175
e-mail: [email protected]

The SC will only accept completed applications delivered by courier, AR registered post or by hand for security purposes.

No application need be made to the SC for recovery of securities with respect to the four categories of securities which have been exempted from the mandatory deposit by 1 December 1998, as outlined in the SC's press statement of 25 November 1998.

SECURITIES COMMISSION MALAYSIA

Issued on behalf of the Securities Commission. For assistance, please contact tel.no. 03-2597164 (Karen De Cruz) / 03-2507550 (Nafizah Omar)) or fax no. 03-2536184.