2nd December 2022 - 3 min read
Bursa Malaysia has introduced a securities donation scheme called Shares2share that allows investors to donate their listed securities, or proceeds from the sale of these securities, to charities supported by Yayasan Bursa Malaysia.
In a statement, the local bourse said that this new scheme will serve as a cost-effective and easily accessible method for investors to contribute to a good cause. It also noted that there are two donation options that investor donors can choose from: to make donations without a tax receipt, or with a tax receipt (which will allow them to receive a tax deduction).
If you wish to make donations with tax receipts, however, you must be a client of the following 15 investment banks; otherwise, you can only participate in the scheme and donate without a tax receipt:
Meanwhile, charities that are supported by Yayasan Bursa Malaysia that you can donate to include Cancer Research Malaysia, Malaysian Relief Agency Foundation, Mercy Malaysia, and the National Cancer Society Malaysia – just to name a few.
Bursa also stated that there are no minimum or maximum requirements on the amount of shares that can be transferred for donation. “This means that investor donors may donate their shares in the form of odd lots as well as board lots,” the local bourse elaborated, adding that there are, however, some securities that are excluded from the scheme. These include stocks listed on the LEAP Market, delisted stocks, structured warrants, leveraged and inverse ETFs, non-equity securities, as well as securities classified as PN17 and GN3.
Furthermore, in a show of support for the Shares2share scheme, the 15 participating investment banks have offered to waive the broking commission and their portion of the Central Depository System (CDS) transfer fee for the share donations. Similarly, Bursa Malaysia Securities Clearing (BMSC) – the local bourse’s clearing house that provides clearing and settlement services for the securities market – will also waive the 0.03% clearing fee and CDS transfer fee.
Chief executive officer of Bursa Malaysia, Datuk Muhamad Umar Swift said that the Shares2share scheme shows the local bourse’s commitment to facilitating initiatives that are beneficial to stakeholders, market participants, and the community at large. “Shares2share will also create additional funding avenues for charitable organisations to facilitate positive impact creation for society and the environment,” he further commented, adding that Yayasan Bursa Malaysia has plans to include more charity organisations in the near future.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world