You need to proceed to the lawyer's office to execute the Share Financing and other Security documents Agreement and pay for the legal fees and stamp duty. You are also required to deliver the documents given to you during the signing of the Letter of Offer to your appointed broker.
No. The account can only be used solely for your own utilization. Utilizing the share financing account facility for a third party will constitute an event of default upon which the Bank may act to cancel or recall the facility at any time.
Yes. However, the Bank will impose a lower margin of financing i.e. 50% or lower on the shares of the company of which you are a director or a member of management committee. This will be applicable to your parents, spouse and children as well.
You can transfer your shares into your share financing account at the broker where your personal CDS account is maintained. You would also need to sign the CDS transfer forms and pay for the normal CDS transfer charges. BMD (Bursa Malaysia Depository) currently charges RM10 per counter transferred. A copy of your Letter of Offer has to be attached to your transfer forms before the transfer can be effected. Please keep a copy of the Letter of Offer for future share transfers.
The transferred shares will be updated in your Citibank share financing account on the 3rd business day.
Yes, you can, provided that your financing ratio does not exceed your approved margin of financing. A withdrawal request form duly signed by you must be submitted to Citibank by 4PM. Once approved in system the proceeds shall be credited into customer CASA account or check is ready for collection by 10.30am the next day.
Yes, you can, but it is subject to approval that your financing ratio does not exceed your approved margin of financing. You will need to fill up a CDS Outgoing transfer request form. There will be a BMD(Bursa Malaysia Depository) charges of RM10 per counter transferred. There will be a RM10 courier fee charges by Citibank per request. The courier fee is waived if customer make a request to personally collect the CDS transfer form from Citi and deliver by himself to the Broker's office.
BMD (Bursa Malaysia Depository) does not permit any transfer of shares from third party accounts. You can only transfer in shares from your personal CDS account.
Citibank together with your appointed stockbroker will settle all trades on due date of your contracts. For purchases, your CDS account will be credited for shares purchased on T+3. Citibank will debit your share financing account on due date (T+3) and forward payment to your stockbroker on same day. For sales, your CDS account will be debited for shares sold on T+3 upon receipt of the sales proceeds from your stockbroker.
Yes, up to the approved margin of financing or the maximum credit line whichever is lower. You will need to instruct Citibank through a cash drawdown notice form with 24 hours notice given. Cash drawdown can only be made payable to yourself or credited into your Citibank account your appointed stockbroker or the registrars. Release of the check is subject to the receipt of original instruction. The maximum cash drawdown per day is RM 2,500,000.00.
No. You cannot withdraw your sales proceeds if your sales proceeds are not in yet.
A monthly comprehensive account statement would be sent to you outlining your monthly transaction history, your portfolio and summary of your margin account status. You can sign up for our Self-Service Phone Banking (CitiPhone) where you can obtain information on your available balance, share value, loan outstanding and financing ratio at anytime, 24 hours a day, 7 days a week OR speak to our Share Financing Representative (press 98 after language selection) 9 am to 5 pm, Monday to Friday.
We will send you a list of counter with price cap once a month together with your monthly statement or you can call CitiPhone.
Yes, value will be given to your bonus shares 1 business day after lodgment date.
Any bonus shares entitled to you will be automatically credited to your CDS account and you will be notified on this credit. The bonus shares will be credited to your account approximately 3-4 weeks from the lodgment date of the counter. For your entitlements, Citibank will advise you on the type of entitlement quantity and amount payable should you wish to subscribe for these entitlements. A letter of instruction together with this notice will be sent to you for action. In the event that you do not wish to subscribe for these entitlements, you may sell the rights during the designated rights trading period.
You give instruction to your appointed remisier to trade through Citibank share financing account. The remisier will then execute the purchase / sale transactions. Settlements on the contracts are made between the stockbroker and Citibank.
The purchase contracts will be rejected. Citibank will notify the stockbroker of any rejected purchase by fax and to you by letter. You can request Citibank in to re-accept the rejected purchase and advise us on the additional collateral to be deposited.
Your contract will be rejected. However, to avoid buying-in on T+3, you must ensure that the quantity oversold are received and deposited into your CDS account latest by 3.00 p.m. on T+2. Your stockbroker will forward to Citibank the sales proceeds on T+3, which will be credited to your share financing account.
The available trading limit is computed based on collateral and loan outstanding. The limit is forwarded to the stockbroker by 9 AM each trading day. Trading limit is controlled at the stockbroker via the Broker front-end (BFE) system. Your remisier or you can also inquire on available limit by calling CitiPhone at 03-2383 000003-2383 0000 (KL), 04-296 000004-296 0000 (PG) or 07-268 000007-268 0000 (JB) for self service banking (via T-Pin) OR speak to our Share Financing Representative (press 98 after language selection) 9 am to 5 pm, Monday to Friday.
Yes, you can. You should inform your stockbroker of your intention to swap shares. Citibank allows you to swap shares if your current financing ratio does not exceed your approved margin of financing.
No. However, you may request for a cash drawdown payable to your stockbroker or yourself and settle the purchase contract directly with the stockbroker.
You may contact CitiPhone at 03-2383 000003-2383 0000 (KL), 04-296 000 (PG) or 07-268 000007-268 0000 (JB) via T-Pin OR speak to our Share Financing Representative (press 98 after language selection) 9 am to 5 pm, Monday to Friday.
The Bank will forward a system generated pre-margin call letter to you when the financing ratio is at 5%+ the approved margin of financing i.e. if your approved margin of financing is at 60% then the pre-margin call letter will be sent out at 65% or if your approved margin of financing is 50% the pre-margin call letter will be at 55%. In the letter there are 3 options for you to reduce your financing ratio to avoid any force selling of your shares:
a. To deposit cash or check
b. Pledge marginable shares
c. Sell down the existing shares in your account.
When your account hits margin call, our Collections Officer will give you a call to inform that your account has hit margin call and will request you to regularize the account back to the approved margin of financing within 2 days by using the 3 options provided above. A system generated margin call letter will also be sent to you.
You must regularize your account back to the approved margin of financing by using the 3 options provided above.
If you do not regularize within the 2 days, Citibank will force sell your shares to regularize your account.
No. Subject to market conditions being volatile, the longer you wait, the more you may have to top-up if market worsens. Regularising your account will avoid any force selling to your margin account.
No. The account will not be considered regularized. You still have to continue to top-up, or the Bank may have to force-sell to reduce the financing ratio back to the approved margin of financing. You are to maintain your account within the approved margin of financing at all times.
This document is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security or regarded as an advice of any sort. Although the information in this document are obtained from sources that Citibank considers reliable and while every effort has been made to ensure the accuracy of the information, no liability whatsoever will be accepted by the bank or the author, whether in contract, tort or otherwise, for any error of fact or omission herein which may lead to any direct or consequential loss arising from any reliance upon or use of the information in the material.
Any person considering Share Financing facility should understand the risks involved in trading in securities through a Share Financing account.
Citibank Share Financing offers you a line of credit, which you may use for the purchase of securities or allows you to pledge securities acceptable to Citibank to borrow funds. Borrowing to fund the purchase (leveraging) can have a significant negative impact on the value of and return on the investment, as well as increase the potential to profit.
If the value of the securities held as collateral falls below the approved margin of financing, you will be required to provide additional funds. If the required funds are not provided within the prescribed time, your securities may be liquidated. You shall remain liable for any resulting deficit in your account.
Prior to entering into the transaction, should consult with your own legal, regulatory, tax, financial and accounting advisors to the extent you consider it necessary, and make your own decision regarding the suitability of this product based upon your own judgment and advice from those advisors you consider necessary.
Past performance is not indicative of future results; prices can go up or down.