Filepic of Malaysian Foundation for the Blind members taking part in a White Cane Safety Day walk organised by Lions Club. The foundation is among the nine charities that YBM has partnered with in the Shares2share scheme.
DOING good for people and the planet has been made even easier for investors.
They can now automatically create a bigger philanthropic impact while increasing tax deduction with one simple strategy – donate stock to charity.
Bursa Malaysia Bhd
’s Shares2share scheme enables investors to do just that with ease without any transaction transfer costs.
Supported by the Securities Commission Malaysia, the scheme, which was launched last November, allows investors to donate listed securities or proceeds from the sale of listed securities in a convenient manner to charities supported by Yayasan Bursa Malaysia (YBM).
It is part of Bursa Malaysia’s ongoing efforts towards the betterment of society and the environment, while contributing to the realisation of the United Nations Sustainable Development Goals for a more inclusive and sustainable future.
Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift says that Shares2share welcomes all donors – individuals, corporates or entities in any form.
“Donation of any number of listed securities is most appreciated. One can transfer shares to Shares2share via the Bursa Anywhere app or head to your trusted broker’s office to carry out the share donation,” he says.
Investors can donate their Bursa-listed shares in board or odd lots. Umar says that allowing donation of odd lots is a convenient way for investors to lighten their portfolio, as trading them may incur higher liquidation costs.
Model 1: This applies to donors who prefer to donate their listed securities under Shares2share without the need for tax receipts.The donors transfer their listed securities to Yayasan Bursa Malaysia’s CDS account under Shares2share. Proceeds from the sale ofthe donated securities will be channelled to charitable organisations by Yayasan Bursa Malaysia.
“Based on data up to Dec 31, 2022, there were 80.7 million units of odd lot shares in CDS accounts, which could be donated through this scheme.
“These shares, when aggregated with others, can make a difference in generating much needed funds for charitable and worthy causes,” he says, adding that there is a large variety of shares to donate as there are currently 989 companies listed on Bursa.
Excluded from the Shares2share donation scheme are stocks listed on the LEAP Market, delisted stocks, structured warrants, leveraged and inverse exchange traded funds, non-equity securities, and securities classified as PN17 or GN3.
Fee waiver
In support of this initiative, the 15 participating organisations collaborating with Bursa Malaysia on Shares2share have agreed to waive their brokerage fees and their portion of the CDS transfer fee.
These organisations will facilitate any necessary requirement such as opening of designated EAN account for the transfer of the listed securities by their clients towards Shares2share, says Umar, while the stock exchange will waive the 0.03% clearing fee as well as the CDS transfer fee.
“All these waivers would allow YBM to extract as much value as possible from the donated shares,” he adds.
For their securities donations, investor donors can choose from two options:
> Donation without a tax receipt.
> Donation of the proceeds from the sale of shares will receive receipts for tax deduction against their disposable income.
Tax receipts will only be available for transactions via the 15 participating organisations.
The nine charities that YBM have partnered with in this scheme were determined and approved by an independent selection committee appointed by the foundation.
Model 2: This applies to donors who prefer to receive tax receipts for the donation of their listed securities under Shares2share.The donors shall transfer their listed securities to their respective participating organisation’s designated exempt authorised nominee(EAN) account. There will be no change in beneficial ownership as the securities still belong to the donors.The securities transfer information shall be shared with Yayasan Bursa Malaysia (with prior consent from the donors) for monitoringpurposes. The objective of the monitoring is to enable Yayasan Bursa Malaysia to liaise with the participating organisation for thedisposal of the securities.If the donated securities are in odd lots, they will be accumulated with other odd-lot securities of the same counter and sold only if theboard lot is achieved. The donated securities will be accumulated on a first-in, first-out basis.
“Our charity partners were chosen based on their contribution to the UN Sustainable Development Goals, among other criteria,” says Umar, adding that there are plans to expand the list of beneficiaries.
Bursa Malaysia is constantly seeking to facilitate positive impact to the society.
Shares2share is the second share donation initiative in South-East Asia that leverages the capital market by rallying market participants towards doing good for people and the planet.
“In line with our aim to create opportunities for the less fortunate and to become a more inclusive society, rest assured that Bursa Malaysia will continue to participate in initiatives that benefit society and the environment.
“Together, we can make positive changes to the philanthropic landscape in Malaysia,” Umar concludes.
Participating companies
The 15 participating organisations collaborating with Bursa Malaysia on Shares2share:
> Affin Hwang Investment Bank Bhd
> AmInvestment Bank Bhd
> Apex Securities Bhd
> BIMB Securities Sdn Bhd
> CGS-CIMB Securities Sdn Bhd
> Hong Leong Investment Bank Bhd
> Inter-Pacific Securities Sdn Bhd
> KAF Equities Sdn Bhd
> MIDF Amanah Investment Bank Bhd
> M&A Securities Sdn Bhd
> Malacca Securities Sdn Bhd
> Maybank Investment Bank Bhd
> Public Investment Bank Bhd
> RHB Investment Bank Bhd
> TA Securities Holdings Bhd
Shares2share charities
The charity beneficiaries of the Shares2share scheme:
> Cancer Research Malaysia
> Hope Mission Welfare Society, Teluk Intan
> Malaysian Relief Agency Foundation
> Mercy Malaysia
> National Cancer Society of Malaysia
> Pertubuhan Kebajikan Mental Selangor
> Pure Life Society
> United Voice
> Malaysian Foundation for the Blind
