I think another alternative is Use Maybank2u, that why I have 2 CDS account, 1 is OSK and the other one is Maybank2u.
For maybank2u, I just make sure I have enuf money, they will do the rest for me.
Hi CK,
I'm Melvin, mailed you before regarding the AIA medical card. I've got a story to share with you which you may post on your blog to educate the readers.
It's regarding the rights shares. I'm not sure if you're familiar with them, but this is my first time dealing with it, and my trading account is a direct account, not a nominee account.
I have bought Kencana shares for quite some time. Recently they issued rights shares and bonus issue simultaneously.
Anyway, I was entitled to the rights, and did not sell them off in the open market, and decided to take it up. They sent me the prospectus and application form for the rights issue.
I had to do the application by myself and not through my stock broker because it's a direct account.
This is part of the instructions:
ORDINARY POST and DELIVERED BY HAND are stressed out. And (at your own risk) is added.
So I duly completed the form, attached the money order, sticked the Setem Hasil, and mailed it to them in the envelope they provided. The address can't be wrong. I sent via normal ordinary mail, as stated/required.
After one month of waiting, my CDS account is not credited with the mother shares. First I called up my remisier, and he advised to call up the rights shares registrars.
I called up Symphony Share Registrars Sdn Bhd. I had to wait for quite a long time to talk to an operator. I spoke to a man about my case. He checked and said that they did not receive my application form, and ask me to fax a letter to Puan Rozleen to state my case. I didn't hear from them for a few days and tried to call again. No one answered the phone for more than half an hour.
When I got through to Puan Rozleen, she said she did not receive my fax, and will call me back after she check the status. No calls from her. Two days later, I called again. She had forgotten.
Finally, she said that she could not do anything as they claimed they did not receive my application form.
After making more calls, it seems that I could not do anything about it and lost my thousands of worth in the rights shares entitlement and bonus, because I do not have proof that I had send the mail.
And my money order is locked for 3 months, before I can claim back the amount.
The shares are greatly diluted after the rights (2 for 5) and bonus exercise (3 for 10, also applicable on the rights shares). So I lost about 34% in worth. If my application was successful, I'd have gained about 24%. That's a big difference of 58%.
I had followed instructions, and it turned against me.
Lesson learnt: Use registered mail to send these kind of applications.
3 comments
Your maybank2u is a nominee account?
My remisier told me that using a nominee account is simpler. He will kau tim everything for u for a small fee.
The disadvantage of nominee accounts are: you might not receive your annual reports, prospectus, discount vouchers, etc (depends on your brokerage firm). And they charge you a small fee for each dividend check banked into your account (example: RM1 for each RM100 or part of).
yes, nominee account is better in that aspect.
I have an nominee account with HLeBroking & recently my stock holding is having right issue.
It was very easy. I just tell them what I want & they do everything for me.
And for the disadvantage, for me it is only a small matter.
so u can have two 1 nominee 1 own then u can fully utilized it loh