Short Term Financing

A financing facility that lets you extend your settlement period for the purchase of stocks for up to 10 days from the normal 3-day settlement period  

Benefits 

• Extend your contra period up to 10 days, allowing for more time for your stocks to move
• No interest charge or contra charges

Who can apply

• Those with a normal trading account with Aseambankers

How to apply

• To apply, just provide us with a certified true copy of your identity card (IC) and fill up the application form.
• For a trading limit above RM250,000, you will need to submit either a J Form, EA Form or Bank Statement. Your application will be subject to the discretion of the Management.
• For a trading limit up to RM250,000, no proof of income is required.
• The Short Term Financing facility will be operated according to the supplementary terms and conditions apart from the normal trading terms and conditions.

Trading Leverage

Aseambankers will provide financing based on your cash and share balance which will act as collateral for the facility. The amount of leverage is:

Cash: A trading limit of 2.5 times your cash balance.
Shares: A trading limit of 1.5 times the value of your shares, net all fee and charges.

The STF margin position must always be maintained above 166.67%. If the value of your shares equity falls below 130%, the Company will liquidate your position to raise the margin position to at least 150%.

Valuation of Collateral

The financing offered is also based on the type of stocks you own.

Main Board Counters: Lower than RM15.00 or market value

Second board Counters: Lower than RM5.00 or market value

Mesdaq Board Counters: Lower than RM1.00 or 50% of market value

Ineligible counters for STF
We do not extend any credit for the following counters:

• Counters under S176 of the Companies Act, 1965
• Suspended counters
• Designated counters
• PN4 counters
• Call warrants
• Other counters as determined by Aseambankers Malaysia Bhd from time to time

Outstanding position after T+10

On T+11, force selling will be executed on all outstanding positions.

Charges

Brokerage

• Transaction value of less than or equal to RM100K = 0.7%
• Transaction value of greater than RM100K = 0.5%

Charges for contra within T+10

• No contra and finance charges will be imposed

Charges incurred for shares picked up within T+10

• Between T to T+3, no charges will be imposed
• Between T+4 to T+10, a levy of 0.3% will be charged

Charges for losses incurred

• BLR +2% for the outstanding losses

To learn more, visit Maybank Investment Bank's site>