What a CDS account is
CDS stands for Central Depository System. It is the system that holds securities for investors who trade on Bursa Malaysia.
It is run by Bursa Malaysia Depository Sdn Bhd, formerly known as Malaysian Central Depository Sdn Bhd. The company is a wholly owned subsidiary of Bursa Malaysia Berhad.
When you buy listed securities, they are credited to your CDS account. When you sell, they are debited from it. Transfers between CDS accounts are allowed only for reasons that Bursa Malaysia Depository has approved.
How to open one
Bursa Malaysia says investors who want to trade listed securities must open a CDS account with an Authorised Depository Agent (ADA). An ADA is a stockbroking company.
Individuals can also apply to open a new CDS account through Bursa Anywhere, Bursa Malaysia Depository's own app.
An individual can hold only one CDS account with each ADA. Corporate investors can open more than one CDS account with the same ADA.
Direct and nominee accounts
A direct CDS account is held in the investor's own name with Bursa Malaysia Depository. Securities can also be held in a CDS account in the name of a nominee, such as a bank or a stockbroking company.
The difference affects what you can see and do yourself. Bursa Anywhere is currently offered only to individuals with direct CDS accounts. For an account held in a nominee's name, Bursa Malaysia says you need to contact the nominee for anything relating to that account.
What you can check yourself
Bursa Anywhere lets individual depositors with direct accounts check their securities balances and view monthly CDS statements.
Other services include updating personal details, reactivating inactive or dormant accounts, subscribing to electronic dividends (eDividend) and applying for rights issues (eRights).
Being able to see your own balances and statements from Bursa Malaysia Depository is a direct way to confirm what is held in your name.
Check that the broker is licensed
Because a CDS account is opened through a stockbroking company, the first check is the company itself.
Search its name at sc.com.my/investment-checker or on the Securities Commission Malaysia's list of licensed intermediaries. Also look it up on the SC Investor Alert List and on Bank Negara Malaysia's Financial Consumer Alert List.
SmartChecker shows register records and reviews for the companies it lists, with links back to the official sources.
Common questions
Can I have more than one CDS account? Yes, with different ADAs. An individual can hold only one CDS account with each ADA.
Who runs the Central Depository System? Bursa Malaysia Depository Sdn Bhd, a wholly owned subsidiary of Bursa Malaysia Berhad.
Can I use Bursa Anywhere with a nominee account? No. Bursa Anywhere is currently offered only to individuals with direct CDS accounts.
Can I see my CDS statements myself? Yes, for direct CDS accounts. Bursa Anywhere shows monthly CDS statements and securities balances.