ACG CROSS TRAINING

1. Bursa Malaysia Depository Sdn Bhd ACG CROSS TRAINING Merits and Demerits of Direct and Indirect Account Method 27th & 28th June 2006 Bursa Malaysia and its Group of Companies (“Bursa Malaysia”) reserve all proprietary rights to the contents of this Presentation. No part of this Presentation may be used or reproduced in any form without the Bursa Malaysia’s prior written permission. This Presentation is provided for information purposes only. Neither the Bursa Malaysia nor the Presenter make any warranty, express or implied, nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation. It is your responsibility to verify any information before using or relying on it.

2. AGENDA • Introduction - Bursa Malaysia Depository Sdn Bhd - CDS Users - Benefits of CDS - Depository’s Services - Account Structure - Account Status - Statistic • Differences Between Direct & Indirect Account • Merits of Direct & Indirect Account • Demerits of Direct & Indirect Account

3. INTRODUCTION BURSA MALAYSIA DEPOSITORY SDN BHD In November 1992 Bursa Malaysia Depository Sdn Bhd (formerly known as Malaysian Central Depository Sdn Bhd) began providing the Central Depository System (CDS) to the investing public through the opening of CDS accounts. It was a system designed to revolutionise the securities industry in Malaysia.

4. CDS USERS Provides depository services to the following users through the Central Depository System (CDS):-  Authorised Depository Agent (ADA)  Authorised Direct Member (ADM)  Issuer  Issuing house  Share registrar  Account holder / depositor  Clearing House

5. BENEFITS OF CDS • Increased efficiency – Via a computerised book-entry system, it has improved the efficiency of securities transactions e.g. on-line transfer of securities • Increases the capacity of clearing and settlement of securities • Reduces settlement risk - eliminate lost, fraud or misplaced certificate • Automatic registration - save time and costs

6. DEPOSITORY’S SERVICES Core services provided are as follows:-  Account openings  Deposit of securities  Transfer of securities  Withdrawal of securities  Book-entry settlement  Initial Public Offerings (IPOs)  Corporate exercises  Provision of information

7. ACCOUNT STRUCTURE Direct Account : • held directly in the name of individual, corporate body, institutional investors and etc. Indirect Account : • held in the name of nominees where the beneficial owner details are captured • one nominee account one beneficial owner • nominees account can only be opened by Authorised Nominees i.e. bank/ broker/trust companies • Certain relaxation was introduced whereby nominee company can operate omnibus account effective 21 October 2005.

8. ACCOUNT STATUS Active Account : • Accounts having transaction or balance for the last 3 years. Inactive Account : • Accounts with balance but without any transaction for the last 3 years. Dormant Account : • Account without balance and transaction for the past 3 years.

9. STATISTIC AS AT 31 MAY 2006 • No. of Participants - Authorised Depository Agent (ADA)- 37 Authorised Direct Member (ADM) - 27 • No. of Participants Branches - Authorised Depository Agent (ADA) - 127 Authorised Direct Member (ADM) - 1 • No. of CDS Accounts - 3.54 million • No. of Indirect CDS account - 0.56 million No. of Direct CDS account - 2.98 million

10. DIFFERENCES BETWEEN DIRECT & INDIRECT ACCOUNT

11. DIFFERENCES BETWEEN DIRECT & INDIRECT ACCOUNT

12. MERITS OF DIRECT & INDIRECT ACCOUNT

13. MERITS OF DIRECT & INDIRECT ACCOUNT

14. DEMERITS OF DIRECT & INDIRECT ACCOUNT

15. DEMERITS OF DIRECT & INDIRECT ACCOUNT