Central Depository System (CDS) is an electronic account maintain by Malaysian Central Depository (“MCD”) or now known as Bursa Depository.

CDS acts as a means of representing ownership and movement of securities. You need to open a CDS account to buy and/or sell shares, and to keep track of your shares or stocks movement. Shares or stocks that you buy will be credited to your account on due date, and will be debited from your account when you sell the shares or stocks.

To open a CDS account, you need to go to any stock broker company registered with Bursa Malaysia. They are also called Authorized Depository Agent (ADA). The list of registered stock broker companies can be found here, “List of Brokers“. E.g. OSK Investment Bank, Maybank Investment Bank and CIMB Investment Bank.

Anyone above 18 years old can open a CDS account. According to Bursa Malaysia website, you are required to complete the following forms;

If you are an individual investor, you may go to an ADA of your choice and:

• Complete the Opening of Account form and two (2) Specimen Signature Cards.
• For Malaysians, submit the documents together with two (2) certified true copies of your Malaysian National Registration Identity Card (NRIC). As for foreigners, you need to pay the Account Opening fee and submit two (2) certified true copies of your passport.

If you are a corporate investor, you are required to:

• Complete the Opening of Account form and two (2) Specimen Signature Cards.
• Submit the above documents with two (2) copies of all necessary supporting documents (e.g. Certificate of Incorporation, Board Resolution, etc) together with the Account Opening fee.

After you have filled up all the required forms, the stock broker company will open the CDS account and provide you with your CDS account number. The fee for CDS account opening is RM10.

If you are assisted by a remisier, make sure to collect his/her contact no for future reference.

With the CDS account no, now you can straight away apply for IPO. And if you want to buy stock online, the next step is you need to open a trading account. To be continue in the next post.

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