What do investors need to do if they are interested to short-sell any of the RSS Approved Securities? Investors interested to short-sell any of the RSS Approved Securities would need to open a designated RSS trading account with their brokers. All trades have to be executed via this designated RSS trading account. Before any short-selling orders can be executed, investors must provide a confirmation to the broker (i) that they are not an associate pursuant to section 3 of the Securities Industry Act 1983, and (ii) that have borrowed the RSS Approved Securities or have procured confirmation from an Authorised SBL Participant that the RSS Approved Securities are available for borrowing.
Under the SBLNT Model, SBL participants are given an option to agree to their own SBL terms and conditions (OTC transaction) and input the transaction into Bursa Clearing (S)'s SBLNT system through their respective Lending / Borrowing Representative. This serves 2-folds:
A means of effecting finality to the SBLNT transaction whereby the movement of the loaned securities between the Approved SBLNT Lender's CDS (i.e. depository) account to the Approved SBLNT Borrowers Designed SBL CDS account; and Monitoring and statistical purposes.
The key changes introduced under the SBLNT Model are as follows:
Introduction of Lending / Borrowing Representative: The Lending / Borrowing Representative will be the local intermediaries for both Approved SBLNT Lender / Approved SBLNT Borrower to put in SBLNT transactions; Lending Representative can either be local brokers or local custodian banks whereas Borrowing Representative will only be limited to local brokers; Both representatives must be approved by Bursa Clearing (S).
Therefore, prospective SBLNT Participants must ensure that their local intermediaries are approved as Lending / Borrowing Representative before the application to become SBLNT Participants are submitted;
If not Lpc1225, we all wouldn't have been aware of the daily massive short selling of Insas shares since 5th January, it's already 11 consecutive trading days of massive short selling.
"TheContrarian Ya, ya, ya, still before ex-rights date the lending banks/brokers would require the shares shorted be bought back or else how would the beneficiaries of the pledged shares get their rights entitlement."
this problem is between the bankers and short sellers. If the banker unable to cover this problem, then the banker should not lend.
But in certain situation, the bankers "able" to cover up by simply borrow from their own unit trust funds shares and PR. Imagine Public Mutual Funds (PMF) own 50 millions insas shares, they can lend 5 million insas share to short sellers. on 4 feb, PMF get less 1 million PR shares and PR is traded at 70 sen. If short sellers want to settled on 4 feb, he need to buy back 5 millions share + 1 million PR and return back to the bank. Issue settled.
Since the Mutual fund do not intended to buy or sell "ALL" their PR on 4-11 feb, no big issue will arise.
So, most likely the banker is using their unit trust shares to lend to short sellers instead of individual customer shares.
the contrarian, Public bank have 50 type of unit trust if each unit trust own 1 million insas share, then PB have 50 million share without being listed as top 30 share holders.
value-invest aaa .... u mean the 3.8% rps. I disagree if u say sslee more knowledgeable in this thing ... hahahahah ... this is FACT. whereas hng33 has conflict of interest ... so, he view will be biased as well. I will not be surprise if hng33 will claim the PA will be trade at RM 5 on day 1 listed.
So, at the end, u must do some calculation. U must consider a couple of factors. If this and that, or if that and this, then this and that ....
It is wrong to JUST taking example of sunway PA. What is the sunway PA return ? Is it same 3.8% ? How about the OPR ? Is it the same during sunway PA listed ?
U should come out with a range .... something like 95 sen - RM 1.05 with mean around RM 1.00
i am waiting for the small kid to come out with ... "it is not worth to subcribe the RM 1 rps because it will 100% trade at 90 sen." HAHAHAHAHAHAH ... then onli can tembak him mar.
Preference dividend of 3.8% per year payable half yearly. So every half year you are sure to get 1.9 cents.
Shares mean you can trade the RPS in bursa on willing buyer willing seller basic. You just need to q buy or q sell to match if others want to buy/sell at your asking price.
hahahaha .... see ... small kid .... i have alreadi got one ppl willing to buy at RM 1.01 this is share market lah .... anything is possible.
I explain in full elaboration, step by step, every question i answer on how xinquan cheating ppl .... yet still got ppl willing to hold on just to attend the AGM. I even explain there will be NO agm for him to attend but he insist he could not sleep if he sell off all his xinquan share.
Take MSport, got 2 lawyers go and collect millions of msport paying millions ... after everyone know msport is conman and will be going down to zero.
How u explain leh ? Insas rps trade at RM 1 is not impossible. OPR now already at 1.75 and expected to cut further to 1.5 ... u think rps will stay below RM 1 ? Insas rps is paying more than DOUBLE the OPR rate !!! U dun wan ... but all the BANKS WANT LOR !!
However U R compensated by 2.5 free warrant that will worth 75 sen to Rm 1.00 mah....!!
In short U buy PA for Rm 1.00....u get back 1 PA & 2.5 free warrant warrant...U make Rm 500 to Rm 750 from this deal mah...!!
Worth it Mah....!! 19/01/2021 10:56 AM
RPS can hardly go above RM1.00, unlike Sunway PA...till now i also dont know why it can be RM1.10+...should be at max RM1.00
Anyway u have yet to take into the consideration of price adj in mother shares after ex date...nevertheless still can make some money to go thru the rights issues
so, at the end ... should we buy more insas at below RM 1 now ?
Insas has RM 600 million cash (RM 1.16/share) + 15% inari share (RM 2.20/share) + omesti +hohup +dgsb Insas has M&A securities (financial securities is oligopoly ... meaning limited number of license and noone else can enter this market now) Insas is worth more than RM 4.50 per share. And now giving TWO 3.8%rps+5 free warrants for every 10 shares in less than 1 month time.
So, isn't it obvious ? HAHAHAHAHAH U dare to short insas ? U dare to short 5 millions insas ?
Philip will ask how can last quarter revenue only 54.3 million but PBT of 72.5 million and NP of 65.3 million. So profit must be coming from thin air. I am sure next quarter profit will be another record.
4,000 RPS which comes with 10,000 free warrants. RPS will have separate quotation. 900 RPS plus 1,000 warrant can be converted into 1,000 ordinary shares of Insas at anytime
RPS can only be redeemed at end of 5 year at RM 1.00
But 900 RPS plus 1,000 warrant can be converted to 1,000 Insas shares at anytime. (Convertion of warrant is either by cash 900 or 900 RPS)
The question is only controlling shareholders might do this because most of us will just sell the warrant since warrant are always price with premium when the expired date is still long.
Total Net Short Position for 19/01/2021 Stock Code: Short Name: Long Name: Total Net Short Position: (Volume) % of Total Net Short Position: 3379: INSAS: INSAS BERHAD: 6,353,900: 0.92
The conversion of rps to exercise warrant is just a FORMALITY term and act as "safety net" for bankers to subcribe. With this term, banker can get "approval" to buy rps more easily from their bank. Nobody, will exercise these right. It is for the banker to get easy approval to buy rps because the rps has safety net. Sekian.
Shortee is shorting insas based on Technical chart. Insas has triple its lowest 12 month pric, so they short insas. TA does not include the coming rps + free warrant and real NTA, superb coming earning into their calculation. So, shortee will suffer loss every day. This is FACT. So, dunt worri about the shortee ... FOCUS on REAL variables.
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Sslee
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Posted by Sslee > 2021-01-19 08:32 | Report Abuse
What do investors need to do if they are interested to short-sell any of the RSS Approved Securities?
Investors interested to short-sell any of the RSS Approved Securities would need to open a designated RSS trading account with their brokers. All trades have to be executed via this designated RSS trading account. Before any short-selling orders can be executed, investors must provide a confirmation to the broker (i) that they are not an associate pursuant to section 3 of the Securities Industry Act 1983, and (ii) that have borrowed the RSS Approved Securities or have procured confirmation from an Authorised SBL Participant that the RSS Approved Securities are available for borrowing.