Sunday, December 4, 2011

REGULATED SHORT SELLING (RSS) AT BURSA

Basically, short selling means that investors sell a share without first having it. Short selling is a technique used by investors to profit from the falling price of an overpriced market.
In Bursa Malaysia, short selling is regulated under Regulated Short Selling (RSS) and Securities Borrowing and Lending (SBL) guidelines, which introduced to the market on 3rd January 2007. Prior to 2006, short selling was banned for about 8 years.
RSS means that investors sell a share without first having it, but they have to borrow it from the Central Lending Agency (CLA). CLA is an agency managed by Bursa Clearing where all lending and borrowing are taking place. Investors don’t deal directly with the CLA, but they have to go through the approved Participating Organisation (PO) or investment bank.
For those who have excess shares, you may lend it to the CLA and earn some fees.
1. How to participate in RSS?

Investor who wishes to participate in RSS must open a designated RSS trading account with a PO. All short selling transactions are to be executed through a RSS Account.
Prior to executing RSS, investors must first borrow the stocks from the CLA through the approved PO. Investors have to pay a fee and placing sufficient collaterals for borrowing.
Upon successfully borrowed the required stock, RSS will be executed by dealers at PO after receiving instruction from the investors. The order price must be higher than the last traded price of the relevant stocks. This is known as the ‘up-tick rule‘.
2. Which stocks are approved for RSS
Currently, there are 100 stocks are approved by Bursa Malaysia for RSS. Please refer to table 1 below.
The stocks were approved based on the following criteria,
  • average daily market capitalisation must exceed RM500 million for the preceding 3 months
  • at least 50 million shares in public float
  • average monthly traded volume must exceed 1 million units for the preceding 12 calendar months
List of approved stocks for RSS is updated every 6 months.
3. Suspension of RSS
Total short position of an approved stocks is limited to 10% of the total number of the shares. When the limit reach, RSS activities on that stocks will be suspended for 4 market days.
4. More informations
For further information kindly refer to Regulated Short Selling (RSS) Guidelines by
Table 1 : Approved Regulated Short Selling (RSS) Stock as of 1st August 2011.
NoStock CodeStock Name
15185AFFIN HOLDINGS BERHAD
25099AIRASIA BERHAD
35115ALAM MARITIM RESOURCES BERHAD
42488ALLIANCE FINANCIAL GROUP BERHAD
51015AMMB HOLDINGS BERHAD
66888AXIATA GROUP BERHAD
73395BERJAYA CORPORATION BERHAD
81562BERJAYA SPORTS TOTO BERHAD
95258BIMB HOLDINGS BERHAD
102771BOUSTEAD HOLDINGS BERHAD
111818BURSA MALAYSIA BERHAD
121023CIMB GROUP HOLDINGS BERHAD
135071COASTAL CONTRACTS BHD
145141DAYANG ENTERPRISE HOLDINGS BERHAD
157277DIALOG GROUP BERHAD
161619DRB-HICOM BERHAD
173417EASTERN & ORIENTAL BERHAD
182143ECM LIBRA FINANCIAL GROUP BERHAD
198877EKOVEST BERHAD
205101EVERGREEN FIBREBOARD BERHAD
211368FABER GROUP BERHAD
225398GAMUDA BERHAD
233182GENTING BERHAD
244715GENTING MALAYSIA BERHAD
252291GENTING PLANTATIONS BERHAD
265102GUAN CHONG BERHAD
271503GUOCOLAND (MALAYSIA) BERHAD
285138HAP SENG PLANTATIONS HOLDINGS BERHAD
296238HOCK SENG LEE BERHAD
305819HONG LEONG BANK BERHAD
311597IGB CORPORATION BERHAD
323336IJM CORPORATION BERHAD
335215IJM LAND BERHAD
341961IOI CORPORATION BERHAD
355161JCY INTERNATIONAL BERHAD
365122KENCANA PETROLEUM BERHAD
373492KFC HOLDINGS (MALAYSIA) BERHAD
383522KIAN JOO CAN FACTORY BERHAD
395060KINSTEEL BHD
409466KKB ENGINEERING BERHAD
415089KLCC PROPERTY HOLDINGS BERHAD
425878KPJ HEALTHCARE BERHAD
432445KUALA LUMPUR KEPONG BERHAD
445097KURNIA ASIA BERHAD
453794LAFARGE MALAYAN CEMENT BHD
461643LANDMARKS BERHAD
477064LATEXX PARTNERS BERHAD
482011LINGUI DEVELOPMENTS BERHAD
494235LION INDUSTRIES CORPORATION BERHAD
508583MAH SING GROUP BERHAD
511155MALAYAN BANKING BERHAD
525014MALAYSIA AIRPORTS HOLDINGS BERHAD
531171MALAYSIA BUILDING SOCIETY BERHAD
543786MALAYSIAN AIRLINE SYSTEM BERHAD
551651MALAYSIAN RESOURCES CORPORATION BERHAD
565166MASTERSKILL EDUCATION GROUP BERHAD
576012MAXIS BERHAD
585090MEDIA CHINESE INTERNATIONAL LIMITED
594502MEDIA PRIMA BERHAD
603816MISC BERHAD
612194MMC CORPORATION BERHAD
625085MUDAJAYA GROUP BERHAD
635703MUHIBBAH ENGINEERING (M) BHD
643905MULPHA INTERNATIONAL BERHAD
653859MULTI-PURPOSE HOLDINGS BERHAD
665053OSK HOLDINGS BERHAD
675657PARKSON HOLDINGS BERHAD
686033PETRONAS GAS BERHAD
694634POS MALAYSIA BERHAD
704065PPB GROUP BERHAD
718869PRESS METAL BERHAD
721295PUBLIC BANK BERHAD (inc. Public Bank – F)
737084QL RESOURCES BERHAD
749415QSR BRANDS BHD
751066RHB CAPITAL BERHAD
768664S P SETIA BERHAD
778575SAPURACREST PETROLEUM BERHAD
789792SEG INTERNATIONAL BHD
794197SIME DARBY BERHAD
804308SUNWAY HOLDINGS BERHAD
817106SUPERMAX CORPORATION BERHAD
824898TA ENTERPRISE BERHAD
835158TA GLOBAL BERHAD
841589TEBRAU TEGUH BERHAD
854863TELEKOM MALAYSIA BERHAD
865347TENAGA NASIONAL BHD
875112TH PLANTATIONS BERHAD
885031TIME DOTCOM BERHAD
897113TOP GLOVE CORPORATION BHD
904804TRADEWINDS CORPORATION BERHAD
915148UEM LAND HOLDINGS BERHAD
924588UMW HOLDINGS BERHAD
935005UNISEM (M) BERHAD
945142WAH SEONG CORPORATION BERHAD
959679WCT BERHAD
964243WTK HOLDINGS BERHAD
974677YTL CORPORATION BERHAD
980009YTL E-SOLUTIONS BERHAD
992577YTL LAND & DEVELOPMENT BERHAD
1006742YTL POWER INTERNATIONAL BHD