Clearing, delivery, settlement and corporate actions

This topic is about what happens after the match: T+2 delivery and payment, what Bursa Malaysia Securities Clearing does as central counterparty, how failed deliveries are bought in or cash settled, how contra and selling-out work, and how CDS accounts and corporate actions are handled at Bursa Depository. Exam items are short and timetable-driven, so count Market Days carefully and know which rule book each step comes from.

7 min read6 sections

Rules of Bursa Malaysia Securities (Chapters 7, 9 and 10 and Schedules 2 and 3, consolidated as at 28 August 2026), Rules of Bursa Malaysia Securities Clearing Sdn Bhd (consolidated, chapters as at 2019-2024), Rules of Bursa Malaysia Depository Sdn Bhd (consolidated as at 25 August 2025) and the Participating Organisations' Trading Manual version 39, read on bursamalaysia.com on 12 October 2026; Securities Industry (Central Depositories) Act 1991 (Act 453, reprint as at 1 March 2013) from lom.agc.gov.my. As at October 2026. Independent prep, not endorsed by SIDC or the SC.

Must-know for the exam

On-market trades settle T+2: seller's shares by 4.30 p.m. T+1 (first batch) or 11.30 a.m. T+2 (second batch); buyer pays and seller is paid by 2.00 p.m. T+2.
Buying-in without notice starts only if the seller misses the second-batch time; automatic buying-in runs on T+2 from 2.00 p.m. to 5.00 p.m.
Buying-in bid: ten buying-in ticks above the higher of the previous close or the previous session's last done price (Clearing Rule 5.2A; Schedule 5-1).
Odd-lot failures and unsuccessful buying-in are cash settled; the cash goes to the ultimate buyer if the original buyer resold.
Contra: an unpaid purchase sold before 2.00 p.m. on T+2; any difference is settled within 5 Market Days after the contra (Rules 9.09(3), 9.10).
Selling-out of non-paying buyers runs from 2.00 p.m. T+2 until T+3, needs no notice, and payment may be accepted until it is done.
Shares go ex-entitlement 1 Market Day before the books closing date; the last cum purchase day is 2 Market Days before it.
The Clearing House novates on-market trades only; DBTs are not novated and are never automatically bought in.
CDS accounts: individuals aged 18 or over; one account per individual per authorised depository agent; partnerships and undischarged bankrupts cannot open one.
Inactive account (has securities, 36 months idle): debits barred. Dormant account (nil balance, 36 months idle): debits and credits barred until reactivated.

On this page · 6 sections

Traps that cost marks

Counting calendar days across the weekend instead of Market Days.
Treating the first-batch deadline on T+1 as the point of default.
Using the normal trading tick instead of the wider buying-in tick, or ignoring the morning last done price.
Pricing a cum-entitlement buying-in off the lower ex-entitlement market price.
Assuming any sale before settlement is a contra, or that a forced selling-out counts as one.
Applying the T+2 cycle to contra differences, which have their own 5 Market Day deadline.
Thinking a buyer qualifies by buying on the books closing date or on the ex-date.
Setting the ex-date two Market Days before the books closing date, which is the last cum day instead.

The T+2 timetable

Schedule 2 of the Rules of Bursa Malaysia Securities fixes delivery and payment for Ready Basis on-market contracts. Clearing Rule 5.3 runs the matching money settlement with the Clearing House on a net basis.

Step	Deadline
Seller's Tradeable Balance, first batch	T+1 by 4.30 p.m.
Seller's Tradeable Balance, second batch	T+2 by 11.30 a.m.
Delivery to buyer	T+2 by 10.00 a.m. (first batch) or 2.00 p.m. (second batch)
Buying client pays	T+2 not later than 2.00 p.m.
Selling client is paid	T+2 not later than 2.00 p.m.
Selling-out of non-payers	From 2.00 p.m. T+2 until T+3
DBT: selling client paid	T+2 not later than 2.30 p.m. (Schedule 3)

Worked example: a Thursday purchase must be paid for by 2.00 p.m. on Monday.

Trap: Counting calendar days over a weekend. T+2 counts Market Days only.

Takeaway: Everything turns on 2.00 p.m. on T+2: buyer pays, seller is paid, contra closes, selling-out opens.

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Clearing, delivery, settlement and corporate actions

7 min read6 sections

Must-know for the exam

On-market trades settle T+2: seller's shares by 4.30 p.m. T+1 (first batch) or 11.30 a.m. T+2 (second batch); buyer pays and seller is paid by 2.00 p.m. T+2.
Buying-in without notice starts only if the seller misses the second-batch time; automatic buying-in runs on T+2 from 2.00 p.m. to 5.00 p.m.
Buying-in bid: ten buying-in ticks above the higher of the previous close or the previous session's last done price (Clearing Rule 5.2A; Schedule 5-1).
Odd-lot failures and unsuccessful buying-in are cash settled; the cash goes to the ultimate buyer if the original buyer resold.
Contra: an unpaid purchase sold before 2.00 p.m. on T+2; any difference is settled within 5 Market Days after the contra (Rules 9.09(3), 9.10).
Selling-out of non-paying buyers runs from 2.00 p.m. T+2 until T+3, needs no notice, and payment may be accepted until it is done.
Shares go ex-entitlement 1 Market Day before the books closing date; the last cum purchase day is 2 Market Days before it.
The Clearing House novates on-market trades only; DBTs are not novated and are never automatically bought in.
CDS accounts: individuals aged 18 or over; one account per individual per authorised depository agent; partnerships and undischarged bankrupts cannot open one.
Inactive account (has securities, 36 months idle): debits barred. Dormant account (nil balance, 36 months idle): debits and credits barred until reactivated.

On this page · 6 sections

Traps that cost marks

Counting calendar days across the weekend instead of Market Days.
Treating the first-batch deadline on T+1 as the point of default.
Using the normal trading tick instead of the wider buying-in tick, or ignoring the morning last done price.
Pricing a cum-entitlement buying-in off the lower ex-entitlement market price.
Assuming any sale before settlement is a contra, or that a forced selling-out counts as one.
Applying the T+2 cycle to contra differences, which have their own 5 Market Day deadline.
Thinking a buyer qualifies by buying on the books closing date or on the ex-date.
Setting the ex-date two Market Days before the books closing date, which is the last cum day instead.

The T+2 timetable

Step	Deadline
Seller's Tradeable Balance, first batch	T+1 by 4.30 p.m.
Seller's Tradeable Balance, second batch	T+2 by 11.30 a.m.
Delivery to buyer	T+2 by 10.00 a.m. (first batch) or 2.00 p.m. (second batch)
Buying client pays	T+2 not later than 2.00 p.m.
Selling client is paid	T+2 not later than 2.00 p.m.
Selling-out of non-payers	From 2.00 p.m. T+2 until T+3
DBT: selling client paid	T+2 not later than 2.30 p.m. (Schedule 3)

Worked example: a Thursday purchase must be paid for by 2.00 p.m. on Monday.

Trap: Counting calendar days over a weekend. T+2 counts Market Days only.

Takeaway: Everything turns on 2.00 p.m. on T+2: buyer pays, seller is paid, contra closes, selling-out opens.

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Clearing, delivery, settlement and corporate actions

Must-know for the exam

Traps that cost marks

The T+2 timetable

Clearing, delivery, settlement and corporate actions

Must-know for the exam

Traps that cost marks

The T+2 timetable

Failed deliveries and buying-in