OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+) 1.
Dr. Lim has a margin margin facility facility of RM2.0 million million with with SB Securitie Securities. s. The securities securities firm firm has an Adusted Adusted !a"ital !a"ital of RM10.0 RM10.0 million. The wife of Dr. Lim also wishes to o"en a margin account with SB Securities. #hat is the ma$imum limit that SB Securities can gi%e Mrs. Lim& a) RM1.0 mill illion '( RM2.0 million c( RM).0 million d( RM*.0 million Rule 5.3.5 Single Client Rule : Credit facilities given to a single client shall not be more than 30% of MC’s Adusted Ca!ital"5.3.5"#$$. efinition for a single client "if individual client$ also too& into account the s!ouse "5.3.5"'$"a$$. Com!utation : "30% ( RM#0.0mil$ ) RM'.0mil * RM#.0mil.
2.
R+B Securiti Securities es Bhd has an Adusted Adusted !a"ital !a"ital of RM100 RM100 million. million. #hat is the ma$imum ma$imum aggrega aggregate te outstanding outstanding 'alance 'alance in the margin accounts maintained 'y all clients can they ha%e& a) RM100 million ion '( RM1,0 million c( RM)0 mi million d( RM10 mi million Rule 5.3.+ ,imit of -utstanding alance : Aggregate outstanding balance shall not e(ceed #00% of the Adusted Ca!ital of the com!an/ Com!utation : #00% ( RM#00mil * RM#00mil
).
Mem'er Mem'er !om"anies !om"anies shall shall re"ort to the the -$change -$change all ff/Bala ff/Balance nce Sheet Sheet transaction transactionss entered into into 'y them a( on a daily 'a 'asis '( on a wee eely 'as 'asis c) on a mon month thly ly basi basiss d( on a uar uarte terl rlyy 'asi 'asiss Rule +.'.3 Re!orting ) -n a monthl/ basis not later than the fifth "5th $ mar&et da/
*.
3or as long as the declar declarati ation on of Design Designate atedd Securi Securitie tiess remains remains in force force the committ committee ee may im"ose im"ose the follow following ing conditions4 5( A mar margi ginn co% co%er er on all all dea dealiling ngss rel relat atin ingg to such such Desi Design gnat ated ed Sec Secur urititie iess 55( 55( A rest restri rict ctio ionn on all all suc suchh deal dealin ings gs to to deli deli%e %ery ry 'ef 'efor oree sale sale 'ar 'arga gain inss 555( 555( A "rohi' "rohi'iti ition on on any any sale sale of the Desi Designa gnated ted Secu Securit rities ies unle unless ss the the seller seller deli deli%er %erss the Desi Designa gnated ted Secu Securit rities ies to to the Mem'er !om"any at the time of entering into the contract sale 56( 56( Sus" Sus"en endd the cou count nter er shou should ld mani mani"u "ula latio tionn or e$ce e$cess ssi% i%ee s"ecu s"ecula latition on stil stilll "ers "ersis istt a( 75( and 755( b) (I) (I), (I (II) and and (I (III) II) c( 755( 755( 755 7555( 5( and and 75 756( d( All of of th the a' a'o%e Rule +.+ ,.
3or the financial financial year year of 1888 9:; 9:; Securities Securities has sharehold shareholders< ers< fund and "rofit "rofit after after ta$ of RM=.0 million million and and RM8.= million res"ecti%ely. #hat is the minimum "ercentage of "rofit after ta$ that must 'e "laced in the Reser%e 3und for that 1888 financial year& a( RM*80000 '( RM8=0000 c) RM1.96 mi millio lion d( RM*.80 mi million Rule .#.' Reserve 1und ) MC to !ut aside annuall/ !ercentage of its audited 2A to a reserve fund base on the follo4ings S6olders’ S6olders ’ 1und Min !ercentage !ercent age of 2A to be !laced ,ess than RM#0mil '0% et4een RM#0mil ) RM30mil #0% More than RM30mil 0% Com!utation : RM.7mil ( '0% * RM#.8mil
Page 1 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+) >.
#hich of the following is a !RR-!T statement& An ATS "erator may 5( !ancel or withdraw an order which remains une$ecuted or unmatched 55( -nter orders into the S!R- 'etween 8 a.m. and 12.)0 ".m for the morning session and 2.)0 ".m and ,.00 ".m for the afternoon session 555( ;ot enter into the S!R- a single order of securities e$ceeding ,00 'oard lots 56( -nter orders into the S!R- and the orders are %alid for that maret day only a( 75( 755( and 7555( '( 755( and 7555( c) (I) and (III) d( 75( 755( and 756( Cha!ter 5 : rading 5( !RR-!T ? Rule ,.1.@7@(7a( 55( 5;!RR-!T ? Rule ,.1.@7)(4 rders can 'e entered 'etween =.)0am and 12.)0"m and 2.00"m and ,.00"m. 555( !RR-!T ? Rule ,.1@.@7=( 56( 5;!RR-!T ? Rule ,.1.@72(4 rders entered shall 'e %alid for that trading session only @.
The 'usiness o"erations of an Ad%iser should 'e headed 'y the Mem'er !om"anies< a( !hief -$ecuti%e b) Executive Diecto o! "#eations c( -$ecuti%e Director of Dealing d( Board of Director Rule +.9.3"'$ =.
5n the e%ent of a 'uying client which fails to settle its outstanding amount the selling out "rocess should 'e conducted 'y the a( -$change on the )rd maret day after the transaction '( -$change on the *th maret day after the transaction c) Membe $om#anies, a!te 1%.&0#m on the &d ma'et day a!te the tansaction d( Mem'er !om"anies after 12.)0"m on the *th maret day after the transaction Schedule 'A ) 2art +: 1or read/ basis contract MC to close off !urchase !ositions if client f ail to !a/ b/ #'.30!m on 3 and MC to institute a selling;out "force selling$ b/ +. 8.
#hat is the minimum 'id for shares that are "rice 'etween RM10 and RM2*.80& a( 2 sen '( , sen c) 10 sen d( 2, sen Schedule +: Minimum bid 2rice "RM$ Minimum bid "sen$ ,ess than #.00 < et4een #.00 to '. # et4een 3.00 to +.7 ' et4een 5.00 to .5 5 et4een #0.00 to '+.0 #0 et4een '5.00 to .95 '5 et4een #00.00 and above 50 10. Any differences arising from a contra< 'etween outstanding "urchase "osition and outstanding sales "osition shall 'e settled 'etween Mem'er !om"anies and their clients not later than the a) 1st maret day following the date of such contra< b) )rd maret day following the date of such contra< c) th ma'et day !olloin* the date o! such +conta d) @th maret day following the date of such contra< Schedule ': 2a/ments; he difference resulting from =contra> shall be settled bet4een MC and clients not later than fifth "5th $ mar&et da/ after contra date.
Page 2 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
11. Mr !han 'ought some shares on a ready 'asis on @ th ct 1888 Tuesday. #hat is the last day Mr !han must mae settlement& a) 1)th ct 1888 Monday 'y 10 a.m. b) 1)th ct 1888 Monday 'y 12.)0 ".m. c) 10th ct 1888 3riday 'y 10 a.m. d) 10th "ct 1999, -iday by 1%.&0 #.m. Schedule 'A ) Scheduled settlement time "1or Read/ asis contract$ in res!ect of !a/ment b/ bu/ing clients to MC not later than #'.30!m on 3. 12. #hich of the following statements are TR-& A com"any seeing listing on the Main Board should meet the following reuirements4 5( has a "rofit trac record of ) years and aggregate after/ta$ "rofit of RM)0 million 55( has a "rofit trac record of , years and aggregate after/ta$ "rofit of RM)0 million 555( a minimum after/ta$ "rofit for the most recent year of RM=.0 million 56( "rior to the listing at least 2,C of the issued and "aid/u" ca"ital is in the hands of the "u'lic a( 75( and 7555( '( 755( and 7555( c( 75( 755( and 7555( d) ll o! the above 1). Listed com"anies wishing to issue re"lacement warrants are reuired to o'tain "rior a""ro%al from the Securities !ommission and the limit of the issuance aggregated with all outstanding warrant should not e$ceed of the listed com"any with the a""ro%al from the !ommission Rule '.3.#"'$ ) 1or foreign sholders the aggregate number of directors re!resenting them shall not e(ceed #3 of the total number of directors of the MC 1>. +isham is a Remisier at SE Securities Berhad and has a trading limit of RM)00000. +owe%er due to his outstanding "erformance his trading has reached its limit. 5n order not to lose out on the commission +isham has made a "ri%ate arrangement with another remisier Dollah that he will re/direct some of his deals to him for a sharing of half of the commission. #hat are the actions that the committee of the -$change can tae& 5( sus"end +isham
Page 3 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+) '( 75( 755( and 7555( c( 755( 7555( and 756( d) ll o! the above 1irstl/ 6isham’s action is 4rong as !er Rule +.7.'"7$ that stated that a R cannot divides or shares his commission 4ith an/ other !erson than his Member Com!an/. 6e can be struc& off the Register b/ the Committee. Rule ##.'.# : A R 4ho breached the rules are liable to a re!rimand? fine? sus!ension? name struc& off from register and restrictions on his activities as a R. Article 7.# : An/ Member"AMM is a @oting Member$ 4ho breached the rules are liable to a re!rimand? fine? sus!ension? e(!el and restriction on its activities to its functions as a ealer . 1@. #hich of the following statements are TR-& 5( an order should 'e "rioritise according to "rice and time 55( a Limit rder has "riority o%er Maret rder 555( for Limit rders "reference is gi%en to the highest 'uy orders and lowest sell orders 56( when 'uyF sell orders are uoted at the same "rice "reference is gi%en to the earliest 'uyF sell order i.e. first in first out matched a( 75( and 755( '( 755( and 7555( c( 75( and 7555( d) (I), (III) and (I) Rule 5.#.7 ) Matching !riorit/ $ C-RRBC $ C-RRBC ) Mar&et -rder has !riorit/ over ,imit -rder $ C-RRBC @$ C-RRBC 1=. As stated in the !om"anies Act 18>, a S"ecial Resolution should 'e accorded the a""ro"riate notice of a( @ days '( 1* days c) %1 days d( 2= days 18. Section *, of the S5A 18=) states that a dealer can withdraw monies from a trust account for the "ur"ose of maing a "ayment4 5( to or in accordance with written instructions of a "erson entitled to the money 55( defraying 'roerage and other "ro"er charges 555( to to"/u" on the margin client
Page 4 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+) RR 3 of # ) + information is to be !rovided to the B(change not later than 5 trading da/s from the date of the . A!art from the 3 mentioned above the other information is: the s!ecific reason for the transfer. 21. Glacement< can 'e defined as4 a( an issue of new shares to the "u'lic at a "rice agreed u"on 'y the issuer and the merchant 'an b) an issue o! secuities that ae not o!!eed to the *eneal #ublic but to #aty #aties consideed desiable to the com#any c( an issue of securities to holders of other classes of securities u"on e$ercise of con%ersion of the securities held d( an issue of new shares for e$change of assets or share ca"ital of another com"any 22. The !ontinuing Listing Reuirements "ro%ide thatH 5( 3inancial statements to 'e "ro%ided to the 9LS- uarterly within 2 months from the end of e%ery financial uarter gi%ing all information "rescri'ed 'y the 9LS-. 55( "reliminary financial statement to 'e "ro%ided to the 9LS- within ) months of the end of the financial year 555( audited annual accounts to 'e issued within * months of the end of the financial year gi%ing all information "rescri'ed 'y the 9LS-. 56( annual re"orts to 'e recei%ed 'y shareholders within si$ months of the end of the financial year. a( 75( and 755( '( 75( 755( and 7555( c) (I), (III) and (I) d( All of the a'o%e ,isting ReEuirements of F,SB;Cha!ter : Continuing isclosure. Refer to 2art F ) 2eriodic isclosures. Also in B(amination Stud/ Guide:Module 8 "Stoc& Mar&et H Securities ,a4$ o!ic + 2aragra!h '.' 2). 5nsider< as defined 'y the !om"anies Act 18>, is4 a( an officer of the cor"oration who has "ri%ilege information that may effect the share "rice of the com"any to rise '( a director of the cor"oration who has un"u'lished "rice sensiti%e information that could affect that the share "rice of the com"any materially c) a #eson ho in o in elation to dealin* in secuities o! a co#oation has any in!omation hich i! *eneally 'non mi*ht easonably be ex#ected to a!!ect mateially the #ice o! the shae d( the chief financial officer of the cor"oration that handles all the financial information of the com"any 2*. #hich of the following statements are true in regards to cor"orate shareholdings in a Mem'er !om"any4 5( A com"any or cor"oration with a shareholders< fund of more than RM100mil may 'e allowed to hold more than ,1C of the total "aid/u" ca"ital of a Mem'er !om"any. 55( A foreign stoc'roing com"any may not 'e allowed to 'e a shareholder of a Mem'er !om"any. 555( A foreign stoc'roing com"any shareholdings in a Mem'er !om"any shall 'e restricted to no more than )0C of the total "aid/u" ca"ital of the Mem'er !om"any 56( The committee may allow a foreign stoc'roing com"any to hold more than )0C of the total "aid/u" ca"ital of a Mem'er !om"any if it 7u"on consultation with the Securities !ommission( is satisfied that the foreign stoc'roing com"any has contri'uted "ositi%ely towards t he 'usiness of a Mem'er !om"any. a( 5 : 55 b) I, III 2 I c( 5 : 555 d( 5 55 555 Rule '.+.3: Addition to refer to no. @ ) the foreign stoc&bro&ing com!an/ is allo4ed to hold more than 30% under the said circumstances !rovided that no foreign stoc&bro&ing com!an/ shall at an/ time be !ermitted to hold more than +% of the total !aid;u! ca!ital of the Member Com!an/. 2,. 5ndi%idual shareholdings shall 'e4 a) not moe than 10/ o! the total #aid u# ca#ital o! the Membe $om#any '( not more than ))C of the total "aid u" ca"ital of the Mem'er !om"any c( not more than *8C of the total "aid u" ca"ital of the Mem'er !om"any d( not more than ,1C of the total "aid u" ca"ital of the Mem'er !om"any Rule '.+.' "#$: Inless a !rior 4ritten a!!roval of the Minister has been obtained? no natural !erson ma/ hold more than #0% of the total !aid;u! ca!ital of an/ MCJ !rovided al4a/s that the aggregate total !artici!ation of natural !ersons in the share ca!ital of the MC shall not be more than +% of its total !aid;u! ca!ital.
Page 5 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
2>. Settlement for net "urchases 'y a Mem'er !om"any must 'e made to S!A;S 'y4 a( 12.)0 "m on TI2 b) 10.00 am on 34& c( 12.)0 "m on TI) d( 10.00 am on TI* Schedule 'A : 2art ' 2@. A "erson may 'e %iewed as fraudulently inducing someone to deal in securities if that "erson 5( 55(
does not care whether the statement or information is true or false nows or reasona'ly to ha%e nown that the statement or information is false or misleading in a material "articular 555( maes or "u'lishes any statement "romise or forecast that he nows to 'e misleading false or dece"ti%e 56( dishonestly conceal some material facts a( 75( and 755( '( 755( and 7555( c( 755( 7555( and 756( d) ll o! the above Section 78 of SA ) False or misleading statement : A !erson shall not ma&e a statement? or disseminate information? that is false or misleading in a material !articular and is likely to induce the sale or purchase of securities by other persons or is li&el/ to have the effect of raising? lo4ering? maintaining or stabiliDing the mar&et !rice of the securities if? 4hen he ma&es the statement ) a$ he does not care 4hether the statementinformation is true or false b$ he &no4s or ought reasonabl/ to have &no4n that the statement or information is false or misleading in a material !articular. Section 79 ) Fraudulently inducing persons to deal in securities: $ A !erson shall not ) a$ b/ ma&ing or !ublishing an/ statement? !romise or forecast that he &no4s to be misleading? false or dece!tive. b$ b/ an/ dishonest concealment of material facts. c$ b/ the rec&less ma&ing or !ublishing? dishonestl/ or other4ise? of an/ statement? !romise or forecast that is misleading? false or dece!tiveJ or d$ b/ recording or storing in? or b/ means of? an/ mechanical? electronic or other device information that he &no4s to be false or misleading in a material !articular? induce or attem!t to induce another !erson to deal in securities. 2=. #here a Mem'er !om"any sends circular or other similar written communications in which he maes a recommendation with res"ect to securities they must 5( 55( 555( 56(
mae a concise statement of its own interest in the securities concerned mae nown that information to all its clients ensure the circular is signed 'y a Director an -$ecuti%e fficer or the Secretary of the Mem'er !om"any "reser%e a co"y of the circular for a "eriod of se%en 7@( years
a( 75( and 755( '( 75( 755( and 7555( c) (I), (III) and (I) d( All of the a'o%e Refer to Section 3 of SA: Certain persons to disclose certain interests in securities o "$:C-RRBC: Section 3 "#$ stated that a dealer 4ho sends out 4ritten communications in 4hich he made recommendations must ma&e a concise statement of the nature of his interest in the securities. o "$:C-RRBC: Section 3"8$"d$ stated that 4here that !erson is a cor!oration? the circulars must be signed b/ a director? an e(ecutive officer or the secretar/. o "@$:C-RRBC: Section 3"9$ stated that all 4ritten communications must be &e!t a co!/ for 9 /ears.
Page 6 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
28. #hen someone acuires more than of the shares that carry %oting rights then he must e$tend a mandatory general offer to the remaining shareholders of that "articular com"any. a( b) c( d(
2,C &&/ ,0C @,C
)0. #hich of the following statements are TR- a'out the -$ecuti%e Director of "eration& 5( 55( 555( 56(
res"onsi'le to o%ersee the functions of the !om"liance fficer must ha%e at least , years of rele%ant woring e$"erience to 'e engaged full time in the office of the Mem'er !om"any a mem'er of a recognised stoc e$change
a( 75( and 755( '( 75( 755( and 7555( c) (II), (III) and (I) d( All of the a'o%e o. "$ is incorrect as according to Rule 3.8.8 "#$ : he Com!liance -fficer shall re!ort directl/ to the board of directors. )1. !ode of Taeo%er : Merger is only a""lica'le for4 a( '( c( d)
"ri%ate com"anies with "aid/u" ca"ital of more than RM10 million "u'lic listed com"anies com"anies with 'umi"utra "artici"ation of more than ,1C any com#anies intendin* !o ta'eoves o me*es
)2. #inS!R- system can 'e used for4 5( 55( 555( 56( a( b) c( d(
credit control management su'mission of !a"ital adeuacy Ratio order and trade routing managing the Mem'er !om"any
)). The following ty"es of collateral are acce"ta'le for margin account4 5( 55( 555( 56( a( '( c( d) Refer to
go%ernment 'onds fi$ed de"osits certificates in foreign currency denomination local 'aner
Page 7 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
)*. Direct Business Transactions must 'e within a( '( c( d)
10C of the 6#AG of the "re%ious session
),. #hat is the time inter%al for u"dating the inde$es in B3-& a( '( c( d)
real time e%ery second e%ery )0 seconds evey minute
)>. #hich is the authority to grant a Dealer Re"resentati%e license& a( '( c) d(
9LSMinistry of 3inance 7ecuities $ommission 35!
)@. #hat is the ma$imum "ercentage of 'roerage that a dealer0C Rule +.7.' "9$: he commission of a Commissioned ealerKs Re!resentative shall not e(ceed +0% of the bro&erage charged b/ the Member Com!an/ to clients introduced b/ him )=. The stoc maret is made u" of two marets i.e. the "rimary maret and secondary maret. The secondary maret is a central maret "lace "ro%ided 'y the stoc e$change4 a( b) c( d(
which allows a com"any to raise initial ca"ital hee #eo#le can sell and buy secuities #eviously issued to issue rights issue and other securities to issue 'onds and o"tions
)8. Mem'er !om"any shall send out statements to all its margin clients at the following inter%als& a( '( c) d(
the following day of transaction weely monthly yearly
*0. The !ommittee may im"ose the following conditions for Designated Securities4 5( 55( 555(
56(
a(
a margin of co%er on all dealings relating to such Designated Securities a restriction on all such dealing to deli%ery 'efore sale 'argains a restriction on all trading in the Designated Securities 'y a Mem'er !om"any to the e$tent that the outstanding contracts of that Mem'er !om"any in res"ect of the Designated Securities at any one time do not e$ceed fifteen "ercent 71,C( of the "aid u" ca"ital of the 5ssuer whose securities ha%e 'een so designated or such other "ercentage as the !ommittee may from time to time direct a "rohi'ition on any sale of the Designated Securities unless the seller deli%ers the Designated Securities to the Mem'er !om"any at the time of entering into the sale contract 75( and 755(
Page 8 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+) '( 75( 755( and 7555( c) (I), (II) and (I) d( All of the a'o%e o "$ is incorrect : Refer to Rule +.+.#"c$ ) the correct !ercentage is 5% *1. "on com"letion of the transaction Direct 'usiness transaction done in a trading session shall 'e re"orted to the -$change within a) 1 minutes o! com#letion o! tansaction '( )0 minutes 'efore commencement of the morning trading session c( at any time d( 1, minutes 'efore commencement of the morning trading session Refer to Rule 9.'.'"#$"a$ to confirm the above. Refer to Rule 9.'.'"#$"c$ ) 1or done after 5.#5!m? the re!orting is on the follo4ing mar&et da/? 4ithin 30 minutes before the commencement of the morning trading session *2. The "rice of 6#AG of "re%ious day was RM12.,0. At what "rice if Direct Business is transacted where Mem'er !om"any need not o'tain "rior a""ro%al from the -$change& a( RM1*.)0 '( RM1*.)= c) RM11.0 d( RM10.20 Refer to RR 3 of #: 4ill need !rior a!!roval of the B(change if it is transacted outside the !rice limit. he ceiling limit !rice is #5% of the @LA2 and the floor limit !rice is ;#5% of the @LA2. Calculation ) Ceiling limit !rice : RM#'.50 ( #5% * RM#+.37J 1loor limit !rice: RM#'.50 ( )#5% * RM#0.83 *). #hat is the minimum financial o'ligation a non/mem'er has to meet 'efore he is listed as a defaulter with the -$change& a) RM%,000 '( RM)000 c( RM*000 d( RM,000 Refer Rule 3.3.# **. JK Sdn Bhd is a Mem'er !om"any. The shareholders consists of the following4 JLS is a !or"oration holding )0C of the total "aid u" ca"ital J is 9o"erasi Rayat holding 20C of total "aid u" ca"ital -n Rahman holds *0C of total "aid u" ca"ital andH Datu Muthu holds 10C of the total "aid u" ca"ital. #hat are the "ossi'le 'reaches& 5( 55( 555(
5ndi%idual shareholding e$ceeding 10C !or"orate shareholding e$ceeding 10C !or"orate shareholders shall not hold )0C of the "aid u" and more than *8C of the total "aid u" ca"ital of the Mem'er !om"any 56( Aggregate indi%idual shareholdings e$ceeding *8C a( 75( and 755( '( 75( 755( and 7555( c) (I) and (I) d( 75( 755( and 756( Bn Rahman shareholdings of +0% violates Rule '.+.' that stated that a !erson ma/ not hold more than #0% of the !aid;u! ca!ital of the Member Com!an/. Bn Rahman and atu& Muthu combined shareholdings of 50% also violates the Rules 4hich stated that the aggregate total !artici!ation of individuals must not be more than +%. ,ocal com!an/ 4ith shareholders’ funds of less than RM#00mil can onl/ hold u! to 5#% of the total !aid;u! ca!ital of a Member Com!an/. f it has bigger shareholders’ funds it is allo4ed to hold more. o "$ above should refer to foreign stoc&bro&ing com!an/ 4hich can hold onl/ u! to 30%. 6o4ever? if the Committee and the SC is satisfied that the foreign stoc&bro&ing com!an/ has and 4ill contribute !ositivel/ to4ards the business? it ma/ be allo4ed to hold more than 30% but not more than +%.
Page 9 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
*,. 5nformation which is found in the "ros"ectus is4 5( 55( 555( 56( a( '( c( d)
information a'out the issue non/financial information a'out the issuer financial information a'out the issuer a statement as to the inherent riss in%ol%ed 75( and 755( 75( 755( and 7555( 75( 755( and 756( ll o! the above
*>. 3or the "ur"ose of trading on margin account outstanding 'alanceN means4 a) '( c( d(
the amount oed by a client in his ma*in account aisin* !om his tansaction in secuities, includin* all commission cha*es and inteest ex#enses the aggregate amount of cost and collateral de"osited into a client
*@. Siti is a client of JK Sdn Bhd which is a Mem'er !om"any of 9LS-. She wants to 'uy shares of a selected counter at a s"ecified "rice. -n Rahman is her Dealer
inform Siti that he is the seller of the shares o'tain consent from the Director of the mem'er !om"any he is attached to o'tain a""ro%al from Securities !ommisssion inform 9LS- 'efore e$ecuting the order
a) (I) and (II) '( 755( 7555( and 756( c( 75( 755( and 7555( d( All of the a'o%e Rule 3.+.3 "#0$ Conflict of interest: A ealerKs Re!resentative shall full/ disclose such conflict of interest to the Member Com!an/ and the client !rior to the e(ecution of the transaction. As Bn Rahman is a ealerKs Re!resentative he is also bound b/ Rule 5.'.# on ransactions b/ Bm!lo/ees H irectors under 4hich is stated that he 4ould need to get the Member Com!an/’s director’s consent before he could trade. *=. !om"liance fficer can do the followings4 5( 55( 555( 56(
-$ecute ordersF trades for designated clients of Mem'er !om"any Re%iew the handling of com"laints from clients and recommending solutions A""ro%e the a""lication forms and documents of accounts of clients Re%iew em"loyee
a( 75( 755( and 756( '( 755( 7555( and 756( c) (II) and (I) d( none of the a'o%e Read Rule 3.8.': he duties of Com!liance -fficers are mainl/ on su!ervisor/? revie4ing and monitoring.
Page 10 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
*8. Mem'er !om"any shall not grant credit facilities to the following "ersons4 5( 55( 555( 56(
any of its directors andF or em"loyees any indi%idual to whom any of its directorsF em"loyees has "ro%ided a guarantee any "erson who is "rohi'ited under S.8)72( of the S5A any cor"oration in which any of its directorsF em"loyees has interest as a "artner manager guarantorF agent other than as a Stoc'roing agent
a( 75( 755( and 7555( '( 75( 7555( and 756( c( 75( 755( and 756( d) ll o! the above Rule 5.3.8 ,0. An initial margin must 'e "laced 'y client with the Mem'er !om"any not later than following the contract date of the "urchase of securities and the amount of margin shall 'e such that his euity is not less than of the outstanding 'alance in the margin account. a( ) calendar days 1,0C b) & ma'et days, 10/ c( ) maret days 1)0C d( , maret days 1,0C Rule 5.3.#0"#$ ,1. A client has 'ought shares 'ased on the recommendation of an Ad%iser and has suffered losses. The client now wants to sue the Ad%iser for the losses suffered. #hat are the defenses that are not a%aila'le to the Ad%iser& 5( the client would not ha%e sued if he had made a "rofit 55( the ad%iser did not now of the change in the client
75( (I) and (II) 75( 755( and 7555( none of the a'o%e
,2. Mem'er !om"any has a "osition as follows4 !lient A 'ought >000 units of J shares !lient B 'ought *000 units of J shares and !lient ! sold 20000 units of J shares. Settlement 'etween Mem'er !om"any and S!A;S shall 'e4 a( sell of 20000 units and 'uy 10000 units b) net sell o! 10,000 units c( net 'uy of 10000 units d( none of the a'o%e ,). #here an in%estor holds scri" in a listed !om"any that is taen into the !DS in order to trade heF she must first de"osit that scri"t into !DS account. The in%estor can trade a( '( c) d(
u"on the de"osit reference num'er 'eing gi%en and the account "ro%isionally credited any time after 1* days of de"osit his cedit balance is *iven +!ee status 9LS- ad%ertises in the news"a"er
Page 11 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
,*. Securities !ommission
an issue of securities 'y a "ri%ate !om"any an issue of securities due to an em"loyee share o"tion an issue of securities arising from a non renouncea'le scheme rights issue 'y a listed "u'lic com"any an issue of securities arising from a 'onus issue of an unlisted "u'lic com"any 75( and 755( (II) and (III) 75( 755( and 7555( all of the a'o%e
,,. The following are the characteristic of a !om"any Limited 'y Ouarantee4 5( 55( 555( 56( a( '( c( d)
the lia'ility of each mem'er is limited to the amount the mem'er has guarantee to contri'ute if the com"any has insufficient assets to "ay its de'ts when it is wound/u" mem'er cannot 'e called on to contri'ute any ca"ital while the com"any is a going concern cannot 'e formed with or 'ecome a com"any with a share ca"ital a'ility to increase ca"ital from time to time 75( and 755( 755( 7555( and 756( 75( 7555( and 756( all o! the above
,>. #hat is the "enalty for acting without the rele%ant license& a( fine not less than RM,00000 or im"risonment for u" to 1 year or 'oth b) !ine u# to 1 million o im#isonment !o u# to 10 yeas o both c( fine not less than RM,00000 or im"risonment for u" to 10 years or 'oth d( fine u" to RM1 million or im"risonment for u" to 1 year SA Section #5c ,@. A com"any has an issued ca"ital of RM*00 million di%ided into =00000000 shares of ,0 cent each. 5t has a "aid u" ca"ital shares at *0 cent each. #hat is the com"any
to efficiently reflect the "erformance of com"anies listed on the 9LSto 'e generally sensiti%e to in%estor
a( 75( and 755( '( 75( 7555( and 756( c( 75( 755( and 7555( d) all o! the above Module 8 !g # ) 7
Page 12 of 13 Compliance Dept - Ipoh Branch
OSK SECURITIES BERHAD (Ipoh Branch) COMPLIANCE DEPT. Modul ! (S" # $ Moc% E&a' *"h an+r+)
,8. #hich of the following is wrong a'out 'uying/in& 5( 55( 555( 56(
-$change to announce through its on/line dis"lay system half an hour 'efore the commencement of the maret trading day Buying/in shall 'e conducted 'etween 8.00 a.m. to 12.)0 ".m. and 2.)0 ".m. to , ".m. The 'idding "rice shall 'e 10C higher of the closing "rice for the "re%ious trading session or of the last recorded sale at the close of trading on "re%ious maret day 5f the securities are not o'tained on the first day the 'uying/in shall 'e continued on the second and each succeeding maret day and the 'id "rice shall 'e raised 'y at least , minimum 'ids until the securities are 'ought
a( 75( 755( and 7555( '( 755( 7555( and 756( c) (II) and (III) d( 7555( and 756( o "$ is incorrect as bu/ing;in is conducted bet4een 7.30am to #'.30!m and '.00!m to 5.00!m o "$ is incorrect as bidding !rice is #0 minimum bids "not !ercentage$ >0. #hich of the following is true a'out Re%erse Taeo%ers& 5( 55( 555( 56( 6( a( b) c( d(
only com"anies listed for minimum ) years is eligi'le to "erform a re%erse taeo%er com"limentary assets or 'usiness inected must show at last 2 years of uninterru"ted "rofit for non/com"limentary assets or 'usiness inected on main 'oard com"any the aggregate "rofit after ta$ must 'e at least RM1= million for ) years for non/com"limentary assets or 'usiness inected on second 'oard com"any the aggregate "rofit after ta$ must at least RM12 million for ) years or , years 3inancial ser%ices com"any is not allowed to 'e inected 75( 7555( and 76( (II), (III) and (I) All of the a'o%e ;one of the a'o%e
Page 13 of 13 Compliance Dept - Ipoh Branch
