Bursa Malaysia unveils Shares2share scheme

Investors can donate listed securities towards charities

“Allowing odd lots to be donated is a convenient way for an investor to lighten their portfolio, as trading them may incur higher liquidation costs.”

Datuk Muhamad Umar Swift

KUALA LUMPUR: Bursa Malaysia Bhd has launched the Shares2share scheme that would enable investors to donate their listed securities or proceeds from the sale of the listed securities towards charities supported by Yayasan Bursa Malaysia.

The initiative involves the cooperation of 15 participating investment banks, Yayasan Bursa Malaysia and the Securities Commission.

“The scheme enables investors to donate their shares listed on Bursa Malaysia, in board lots and even odd lots.

“Allowing odd lots to be donated is a convenient way for an investor to lighten their portfolio, as trading them may incur higher liquidation costs,” chief executive officer Datuk Muhamad Umar Swift said in his speech at the launch of the initiative.

Umar said based on stock exchange data up to Oct 30, there are a total of 80.8 million units of odd lot shares in the central depository system (CDS) accounts.

“I am sure some of these could be donated through this scheme. These shares, when aggregated with others, can make a difference in generating much needed funds for charitable and worthy causes,” he said.

Investor donors have a choice of two options to proceed with their securities donations: donation without a tax receipt or a donation of sale proceeds with a tax receipt.

The tax receipt allows the investor donor to receive a tax deduction, the stock exchange operator said in a statement.

The tax receipt is only available if the transaction is done through the 15 investment banks that are listed on Bursa Malaysia’s website.

Investor donors who are not clients of the 15 participating investment banks may still participate in the Shares2share scheme but will not receive a tax receipt, it said.

“The 15 participating organisations have agreed to waive the broking commission and their portion of the CDS transfer fee for the purpose of share donation while Bursa Malaysia Securities Clearing will waive the 0.03% clearing fee as well as the CDS transfer fee,” it said.

“These waivers will keep the transaction costs low, thereby maximising the amount of donation to the Shares2share scheme. There is (also) no minimum or maximum amount of shares required for transfer,” Bursa added.

It said the securities that are excluded from this Shares2share scheme are stocks listed on the LEAP Market, delisted stocks, structured warrants, leveraged and inverse exchange-traded funds, non-equity securities and securities classified as Practice Note 17 and Guidance Note 3.

“There are currently 989 companies listed on the exchange, which means there is a large variety of shares to donate,” Umar said.

He said charities that Yayasan Bursa Malaysia have partnered with for this scheme have been chosen on the basis of their contribution to the United Nations Sustainable Development Goals, among other criterias.

These charities are Cancer Research Malaysia, Hope Mission Welfare Society of Teluk Intan Perak, Malaysian Relief Agency Foundation, Mercy Malaysia, National Cancer Society Malaysia, Pertubuhan Kebajikan Mental Selangor, The Pure Life Society, United Voice and Yayasan Orang Buta Malaysia.

He said there are plans to add more charitable organisations to this list.

“This is the second share donation initiative in South-east Asia that leverages the capital market by rallying market participants towards doing good for people and the planet,” Umar said.