Saturday, March 13, 2010

eDividend to replace cheque and direct credit dividend entitlements into our bank account

Starting from 19 April 2010, investors in KLSE can opt to receive dividend payments from public listed companies in the form of eDividend instead of the traditional way of receiving dividend cheques.

This will bring convenient to share investors using direct trading account(s), although doesn't make much different to those using nominee account(s).

Common problems such as delay receipt of dividend cheque, lost cheque, cheque expired, etc. will be eliminated, as dividend payment will be directly credited into our bank account if we've applied for this eDividend service. After the money is banked in, we will receive eNotification via email and/or SMS.

We can register for eDividend with our stock broker. There will be no cost incurred if we apply for eDividend within the period from 19 April 2010 until 18 April 2011.

The following are needed when applying for eDividend:

  • Fill up a 3-ply eDividend form, and provide info about our bank account number, email, mobile number, etc.
  • Copy of bank statement
  • Copy of NRIC / Passport / Authority Card
The registration process of eDividend is as follow.

And the eDividend payment flow is as follow.

All companies listed in KLSE who announce a books closing date for dividend entitlements on or after 1 September 2010 are required to pay dividends via eDividend to their shareholders who have registered for this service.

Click here for more information about eDividend.


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