A trading facility that provides financing to clients for the purchase of securities quoted on Bursa Malaysia Securities Berhad ("BMSB"). SMF extended is available for a period of three (3) months with rollover fee, if applicable.
Collateral for SMF
"Collateral" means any one or more securities and cash as may be acceptable to RHB Investment Bank ("the Bank") at its absolute discretion and deposited with or transferred to or given to or come into possession of the Bank (with an express irrevocable lien in favour of the Bank) as security to secure the SMF.
a) Quoted Shares
Quoted and listed on BMSB and/or other Recognised Exchanges acceptable to the Bank.
b) Cash Deposit
Denominated in RM.
The ratio of Outstanding Balance against the Equity. Mathematically,
MOF = Outstanding Balance / Equity
"Outstanding Balance" means the amount owed after deducting any cash deposit available.
"Equity" means the sum of the value of securities pledged and purchased or carried in SMF.
i.e. 50% of MOF
means the client has to maintain an equity value of not less than 2 times of the Outstanding Balance.
A request of the Bank to the client to Top Up the Margin.
"Margin" means the aggregate value of collateral deposited (exclude securities purchased and carried).
"Top Up the Margin" means to increase the collateral to ensure the MOF is maintained at all times.
The Bank shall be at liberty to set off any cash and/or sell / realise all or any the collateral held by the Bank.
You can substantially reduce the chance of a margin call by effectively managing your margin loan:
- Borrow conservatively
- Monitor your portfolio and loan account details regularly
- Ensure your portfolio is well diversified to reduce volatility
- Pay your monthly interest
- Create a cushion against margin calls
- Reinvest your dividends to offset against your loan amount
It’s financing provided by a Participating Organisation that allows client to settle the outstanding purchase contract between T+4 and T+7 instead of T+3.
Interest / Holding charges will be levied on outstanding purchase contracts from T+3 night until settlement. For latest rates, please contact your dealer or remisier.
Settlement can be by way of cash or contra.
T+4 onwards. No interest is charged if the purchase contract is settled before T+4.
(i) Cash Deposit (ii) Listed shares approved by the Bank. Non-acceptable stocks are PN17 Stocks, Warrants, Loan Stocks and RHB Capital shares.
Force selling occurs on T+8 if clients fail to settle the outstanding purchase contract on T+7.
