FAQ

Frequently Asked Questions

What is a SHARE MARGIN FINANCING?

A financing facility that provides to clients or investors for the subscription or purchase of securities or to get cash by pledging their quoted shares.

What is a Collateral?

“Collateral” means any one or more securities and cash as may be acceptable to Sentosa Jaya Capital Sdn Bhd (“the Company”) at its absolute discretion and deposited with or transferred to or given to or come into possession of the Company (with an express irrevocable lien in favour of the Company) as security to secure the Share Financing.

What are the collaterals acceptable for Share Financing?
a) Quoted Shares – Quoted and listed on BMSB and acceptable to the Company.
b) Cash Deposit – Denominated in RM.
What is Margin of Finance (“MOF”)?
The ratio of Outstanding Balance against the Equity. Mathematically, MOF = Margin of Finance = Outstanding Balance / Equity “Outstanding Balance” means the amount owed after deducting any cash deposit available. “Equity” means the sum of the value of securities pledged and purchased or carried in Share Margin Account. i.e. 50% of MOF means the client has to maintain an equity value of not less than 2 times of the Outstanding Balance.
What is margin call?

A request of the Company to the client to Top Up the margin by additional shares or cash. “Margin” means the aggregate value of collateral deposited (exclude securities purchased and carried). “Top Up the Margin” means to increase the collateral to ensure the MOF is maintained at all times.

What happens if the client fails to comply with Margin Call in the manner requested?

The Company shall be at liberty to set off any cash and /or sell / realise all or any the collateral held by the Company.

How to avoid a margin call?

You can substantially reduce the chance of a margin call by effectively managing your margin financing:

-Borrow conservatively

-Monitor your portfolio and loan account details regularly

-Ensure your portfolio is well diversified to reduce volatility

-Pay your monthly profit and rollover fee when due

-Create a cushion against margin calls

What is STMF?

STMF is a trading facility that provides financing to clients for the purchase of securities quoted on Bursa Malaysia Securities Berhad (“BMSB”). STMF extension is available for a period of three (3) months with rollover fees, if applicable.

Collateral for STMF

“Collateral” means one or more securities and cash as may be acceptable to Sentosa Jaya Capital Sdn Bhd (“the Company”) at its absolute discretion deposited with or transferred to or given to or come into possession of the Company (with an express irrevocable lien in favour of the Company) as security to secure the STMF.

What are the collaterals acceptable for STMF?
  • Quoted Shares
    Quoted and listed on BMSB and/or other Recognised Exchanges acceptable to the Company.
  • Cash Deposit
    Denominated in RM.