Margin financing is basically the idea of geared investment, which means the investor is using a loan to purchase a large portfolio of shares or securities that could otherwise be bought using his own funds alone. When the investor buys securities on margin, he effectively borrows from the broker to pay for the purchase. The availability of a margin facility would have to be agreed with the broker prior to any purchase and the investor would be required to deposit collateral with the broker for the margin facility. Additionally any shares purchased using the margin facility would also form part of the collateral.
List of products
1. 2 T+5
Features
Interest Rate
Free interest up to T+4 with lower interest from T+5 onward
Fee Charges
Processing fee
Zero rollover fee financing
Lower pick up fee based on outstanding purchase
Trading Limit
Cash up to 2 times
Collateralised shares up to 1 time
Terms
Only applicable for ready basis contract
Upon approval of 2 T+5 application, PM Securities will utilise 2 T+5 facility if client fails to settle outstanding purchase on T+4
Force selling will be executed on T+11
Requirement:
Malaysian (individual only) and above 18 year old
Collateral:
a. Initial deposit of RM10,000; or
b. Minimum three (3) Main Market counters including ACE Market counters; or
c. Combination of two (2) Main Market counters including ACE Market counters and cash
For details, please contact your remisier/dealer or call us at 03-2710 2388
2. IPO Financing
Features
Types of IPO
Allocation Letter and Special Allocation
Interest Rate
As per prescribed rate under the clients existing IPO financing account
Margin Financing
Cash up to 90%*
Quoted Share up to 70%*
Initial Financing Period
1 month (Convertible to normal margin facility after expiry of the tenure*)
Continue Financing Period
3 months Interest Rate at 7.50% p.a. to 9.50% p.a.*
Processing Fee
One (1) time payment of 1% of Disbursed Amount or RM200 whichever is higher
Simple Requirement:
Malaysian (individual only) and above 18 year old
3 copies of NRIC (front and back)
Allocation Letter
For details, please contact your remisier/dealer or call us at 03-2710 2388