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Share Margin Financing

Share Margin Financing
  • Available to all eligible Malaysians, residents and non-residents
  • Collateral is in the form of quoted shares and/or cash deposits
  • A convenient facility that can be used as an additional funding for the purchase of shares quoted or to be quoted on Bursa Malaysia
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Discretionary Financing

Discretionary Financing
  • Settle outstanding purchase at any time up to T+7
  • Lower fees incurred on discretionary financing for clients who wish to hold for longer periods compared to “buy and sell” multiple times
view details

IPO Financing

IPO Financing
  • A financing facility to help individuals to subscribe for new share listing on Bursa Malaysia
view details

ESOS Financing

ESOS Financing
  • Available to all individuals who are offered shares by their employers via Employee Shares Option Schemes (“ESOS”)
view details
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Share Margin Financing
Overview
Share Margin Financing is a convenient facility offered to traders seeking to expand their trading potential. It is available to all eligible Malaysians, Residents and Non-Residents who are of good financial standing. Clients can use Share Margin Financing as additional funding for the purchase of shares quoted or to be quoted on Bursa Malaysia. Collateral is in the form of quoted shares and/or cash deposits.
Why RHB Investment Bank For Your Share Margin Financing Needs?
  • Fast approval
  • Simple documentation
  • Attractive interest rates
  • No rollover fees for Classic and Exclusive
  • Wide range of products to meet your investment needs
Quickview On Share Margin Financing

There are 3 SMF packages to suit your needs and investment objectives:

  • Exclusive
    For traders who trade Top 100 Index stocks on Bursa Malaysia
  • Classic
    For traders who have at least 3 different counters acceptable to the bank
  • Strategic
    For traders who prefer to trade single counters or related counters acceptable to the bank
Features
Minimum Facility Limit
Exclusive Classic Strategic
RM100,000 RM50,000 RM100,000
Pledged And Financed Securities
Exclusive Classic Strategic
Both pledged and financed securities must comprise one or more securities from the [100] securities which are constituents of FTSE Bursa Malaysia [Top 100 Index] Both pledged and financed securities must comprise at least 3 different securities acceptable by the Bank Single Counter / related Counters acceptable by the Bank
Minimum Number Of Different Securities
Exclusive Classic Strategic
None 3 different securities acceptable to the Bank None
Counter Concentration
Exclusive Classic Strategic
N/A No one particular securities constitute more than 50% of the total equity N/A
Counter Evaluation
Exclusive Classic Strategic
N/A N/A Counter evaluation to be carried out on Share Liquidity and its Financials – P&L, Balance Sheet, Cash Flow, Liquidity etc.
Loan Stocks And Warrants
Exclusive Classic Strategic
N/A Loan stocks and warrants composition must not be more than 25% of the total equity N/A
Rollover Fee
Exclusive Classic Strategic
Zero rollover fee Zero rollover fee ≥ 0.5% per quarter
How To Apply

For non-customers
Open a trading account here
Sign up now

For customers
Call your dealer’s representative today
Call

Frequently Asked Questions
1. What is Share Margin Financing (“SMF”)?
A trading facility that provides financing to clients for the purchase of securities quoted on Bursa Malaysia Securities Berhad ("BMSB"). The facility is subjected to rollover on quarterly basis with rollover fee, if applicable.
Collateral for SMF
"Collateral" means any one or more securities and cash as may be acceptable to RHB Investment Bank ("the Bank") at its absolute discretion and deposited with or transferred to or given to or come into possession of the Bank (with an express irrevocable lien in favour of the Bank) as security to secure the SMF.
2. What are the collaterals acceptable for SMF?
a) Quoted Shares
Quoted and listed on BMSB and/or other Recognised Exchanges acceptable to the Bank.
b) Cash Deposit
Denominated in Ringgit Malaysia.
3. What is Margin of Finance ("MOF")?
The ratio of Outstanding Balance against the Equity. Mathematically, MOF = Outstanding Balance / Equity
"Outstanding Balance" means the amount owed after deducting any cash deposit available. "Equity" means the sum of the value of securities pledged and purchased or carried in SMF. The value is subject to capped price or market value whichever is lower.
i.e. 50% of MOF means the client has to maintain an equity value of not less than 2 times of the Outstanding Balance.
4. What is a margin call?
A request of the Bank to the client to Top Up the Margin. "Margin" means the aggregate value of collateral deposited (include securities purchased and carried). "Top Up the Margin" means to increase the collateral to ensure the MOF is maintained at all times.
5. What happens if the client fails to comply with margin call in the manner requested?
The Bank shall be at liberty to set off any cash and/or sell / realise all or any of the collaterals held by the Bank.
6. How to avoid a margin call?
You can substantially reduce the chance of a margin call by effectively managing your margin loan:
  • Borrow conservatively
  • Monitor your portfolio and loan account details regularly
  • Ensure your portfolio is well diversified to reduce volatility
  • Pay your monthly interest
  • Create a cushion against margin calls
  • Reinvest your dividends to offset against your loan amount
Discretionary Financing
Eligibility

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Documents Required
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Fees and Charges
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Frequently Asked Questions
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Product Disclosure
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IPO Financing
Benefits

This is a financing facility designed to help eligible clients subscribe for new share listings on Bursa Malaysia.

Tenure 6 months from listing date
Margin of Financing Terms may vary according to the counter
Limit Minimum RM50,000
Eligibility Institutional and selected investors (including MITI Allocation) for Public Issue Shares allocated by way of Placement under Institutional Offering
Other Terms & Conditions may apply

To Apply

Walk into any of our RHBIB branches or Share Trading Centers that are located at Bank branches

What Is Needed
  • 2 copies of MyKad or Passport
  • Latest 3 months salary slip
  • IPO share placement documents
Additional Information

Call your remisier/dealer or contact the nearest RHB Investment Bank branch to you

ESOS Financing
Benefits

This is a specific financing ability that is offered to eligible individuals who are offered shares by their employers via ESOS. Using this facility, eligible clients can subscribe for the shares allocated to them via their respective Employee Share Option Schemes.

Tenure 6 months from funding date
Margin of Financing Terms may vary according to the counter
Limit Minimum RM10,000
Eligibility Eligible Directors, Management & Employees
Other Terms & Conditions may apply

To Apply

Walk into any of our RHBIB branches or Share Trading Centers that are located at Bank branches

What Is Needed
  • 2 copies of MyKad or Passport
  • Latest 3 months salary slip
  • Letter of Offer from the company to employee / original ESOS Option certificate
  • Original ESOS Option Exercise Form
Additional Information

Call your remisier/dealer or contact the nearest RHB Investment Bank branch to you