First Phase of Dematerialisation of Listed Securities to commence on 1 August 2025
16 July 2025
Bursa Malaysia Depository Sdn Bhd (“
Bursa Depository”), the operator of the central depository of securities certificates for the scripless trading system of Bursa Malaysia Securities Berhad (“
Bursa Securities”), announced amendments to the Rules of Bursa Malaysia Depository Sdn Bhd (“
Depository Rules”) and the Procedures Manual for eRapid
1 User (“
eRapid Procedures Manual”) on 11 July 2025 to facilitate the dematerialisation, i.e. dispensation of the requirement for certificates or other documents of title to be issued as evidence of title or ownership, of certain securities that are to be listed on Bursa Securities.
Implementation Time Frame
The dematerialisation will be implemented in phases, with the first phase being applicable to the following securities (“
Specified Securities”):
- securities of newly listed real estate investment trusts, exchange-traded funds, business trusts and structured warrants; and
- provisional allotment letters of a rights issue and provisional letters of offer of a renounceable offer for sale undertaken by a listed issuer.
The dematerialisation of the Specified Securities under the first phase will take effect as follows:
- in relation to paragraph (a) above, to initial listing applications submitted on or after 1 August 2025; and
- in relation to paragraph (b) above, to corporate proposals involving a rights issue or a renounceable offer for sale announced on or after 1 August 2025. It is to be noted at this juncture that dematerialisation only applies to the provisional allotment letters of a rights issue and the provisional letters of offer of a renounceable offer for sale and not to the underlying securities to be issued pursuant to the rights issue or renounceable offer for sale. The issue of securities pursuant to the rights issue or the renounceable offer for sale must comply with the current requirement for the issue and delivery to Bursa Depository of a jumbo certificate issued in the name of Bursa Malaysia Depository Nominees Sdn Bhd (“Bursa Depository Nominees”).2
The dematerialisation of the other securities, including existing securities held in custody by Bursa Depository, will be assessed and reviewed by Bursa Depository at a later date, after the successful implementation of the dematerialisation of the Specified Securities.
Where the Specified Securities issued by a foreign issuer are subject to a jurisdiction that does not facilitate dematerialisation, the foreign issuer must still deposit with Bursa Depository, scrips representing securities in accordance with the requirements prescribed under the Depository Rules.
Dematerialisation Documents
In relation to the Specified Securities, in lieu of delivery of a jumbo certificate issued in the name of Bursa Depository Nominees before the listing and commencement of trading of the Specified Securities, the applicant, issuer, management company or trustee manager, as the case may be, of the Specified Securities (hereafter referred to as “issuer”) is required to deliver the following documents (“Dematerialised Documents”) to Bursa Depository:
- confirmation that the relevant securities have been registered in the name of Bursa Depository Nominees in the relevant register maintained by the issuer;
- an extract of the relevant register of securities holders maintained by the issuer; and
- any other document that may be required by Bursa Depository.
Summary of the amendments
To implement the dematerialisation of the Specified Securities, Bursa Depository has amended the relevant provisions of the Depository Rules and the eRapid Procedures Manual to,
inter alia, replace the requirement for the issue and delivery of a jumbo certificate issued in the name of Bursa Depository Nominees with the requirement for the delivery of the Dematerialised Documents.
The amendments to the Depository Rules are summarised in section 2 of the
Depository Circular dated 11 July 2025 (No. ISS/RPA/001/2025) issued by Bursa Depository and the amendments to the eRapid Procedures Manual are set out in Annexure 1 to the said Circular.
The consequential amendments to the Main Market Listing Requirements to effect the dematerialisation of the Specified Securities are set out in section 3 of the
Directive (Ref. No. RPA/JH/TAC/RO(ss)/LD07/25 [Phase 1 Demat]) issued by Bursa Securities on 11 July 2025 to Main Market listed issuers.
3
Comments
Although the first phase of the dematerialisation involves a limited range of securities, it is the first baby step towards full implementation of the dematerialisation of all securities that are listed on Bursa Securities.
Alert by Tan Wei Liang (Partner) and Joey Tiw (Senior Associate) of the Corporate Practice of Skrine.
1 eRapid is the web-based system established by Bursa Depository for electronic transmission of information or records between Bursa Depository and the issuer and such other services or facilities as may be determined by Bursa Depository.
2 See Questions and Answers 1(b) in Appendix 2 of the Directive dated 11 July 2025 issued by Bursa Securities to Main Market listed issuers and ACE Market listed corporations.
This article/alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.