• MLY BML issued circular on amendments to the BMS directive on the use of clearing, error or mistake, and investment accounts to facilitate the introduction of Shares2U.
• In addition, MLY BML published annexure 1 containing the detailed amendments.

Framework Overview

• Shares2U is a new scheme enabling participating organizations (POs) to gift eligible clients securities quoted on the stock market as part of marketing schemes.
• Transfers made from PO's central depository system (CDS) account to client's account.
• Eligible securities for gifting include approved securities only (excluding PN17 and GN3 companies), ETFs excluding non-ringgit-traded ETFs, leveraged ETFs, inverse ETFs.
• Approved securities are those that meet the prescribed criteria for short selling.

Required Approvals and Accounts

• POs must submit application to MLY BML for general approval letter before launching campaign; campaign details must be provided but individual campaigns do not require approval; POs to obtain approval to start proprietary trading if not already approved.
• POs must open designated proprietary trading account (IVT account) with prescribed account qualifier to purchase securities for gifting; in addition, they must open a designated CDS account with similar account qualifier to transfer securities to clients.

BMS Directive Amendments

• New account qualifier prescribed for IVT account opened and maintained by POs.
• Namely, for Shares2U purposes; definition of Shares2U included in directive.

Effectiveness

• Amendments to BMS directive effective 22 May 2025.