Malaysia Stock Loan Glossary
The vocabulary of Bursa Malaysia share-backed financing — markets, instruments, custody, loan terms, liquidity, and disclosure — defined plainly, for shareholders and their advisers.
In short
This glossary defines the terms that recur in a Malaysia stock loan, from the markets a share trades on through to the rules that govern disclosure. It covers the Bursa Malaysia markets and indices, the instrument itself, custody and collateral through Bursa Depository and the CDS, the commercial loan terms such as LTV, tenor, and recourse, the liquidity and risk factors that shape pricing, and the regulation and disclosure framework under the SC, the Companies Act 2016, and the Take-overs Code. Each term carries its own link, so it can be cited individually.
Markets & boards
Bursa Malaysia马来西亚交易所
Malaysia's stock exchange, home to the country's listed companies across the Main, ACE, and LEAP markets.
Main Market主板市场
Bursa Malaysia's primary board for established companies that meet its admission criteria.
ACE Market創業板市场
Bursa Malaysia's sponsor-driven market for smaller, high-growth companies.
FBM KLCI / FBM 70 / FBM 100Benchmark indices
Benchmark indices of the largest and most liquid Bursa Malaysia stocks; the FBM KLCI tracks the top 30 by market capitalisation.
Shariah-compliant securities符合伊斯兰教法证券
Listed securities classified as Shariah-compliant by the SC's Shariah Advisory Council; a large share of Bursa counters qualify, enabling Shariah-compliant financing. See Shariah-compliant share financing.
Foreign ownership limitFOL
A sector-specific cap on the percentage of a company that non-Malaysian investors may hold, applied in regulated industries such as banking and telecommunications.
Bumiputera equity conditionEquity participation
Equity-participation conditions attached to some companies and licences, relevant to how certain holdings are structured.
The instrument
Stock loan / Share-backed financing股票贷款
A loan secured by charging listed shares; the borrower keeps ownership and upside and recovers the shares on repayment. See how stock loans work.
Margin financing保证金融资
Borrowing against securities held as collateral. Traditional broker margin financing funds further purchases and carries margin calls; our financing uses the collateral for liquidity instead, so you keep ownership, dividends, and upside.
Lombard loan伦巴第贷款
A private-banking term for a loan secured by a pledge of liquid securities, familiar in Singapore and Hong Kong. Applied to Bursa Malaysia shares it provides non-recourse liquidity against a concentrated holding. See Lombard loans for Bursa Malaysia shares.
Loan stock (ICULS / RCULS)贷款股票 — not a stock loan
A convertible debt instrument a company issues to raise capital (Irredeemable or Redeemable Convertible Unsecured Loan Stock), traded on Bursa Malaysia. This is the opposite of a stock loan or share margin financing, where a shareholder borrows against shares already owned.
Securities-backed lendingSBL
The broader category of lending against securities.
Block tradeDirect business transaction (DBT)
A large, privately-negotiated share transaction crossed off the central order book and reported to Bursa Malaysia. See block trades and block trades on Bursa Malaysia, explained.
Direct business transaction (DBT)直接交易
A trade negotiated directly between an identified buyer and seller away from the central order book and then reported to Bursa Malaysia for clearing and settlement. It is the mechanism by which a block of shares is crossed off-market on the Exchange.
Married deal配对交易
The market term for a parcel of shares matched between a specific buyer and seller at an agreed price and crossed off the order book. On Bursa Malaysia a married deal is executed and reported as a direct business transaction (DBT).
Crossing过户交易
The execution of a pre-matched buy and sell order for the same security at the same price, completed away from the continuous order book. On Bursa Malaysia a block crossing is reported as a direct business transaction (DBT).
Off-market trade场外交易
A transaction in listed shares negotiated and agreed away from the open order book, then reported to the exchange for clearing and settlement rather than matched anonymously on-screen. A Bursa Malaysia block trade is executed off-market as a direct business transaction (DBT).
Custody & collateral
Bursa Malaysia Depository中央存管
The central depository (a Bursa subsidiary) that holds Malaysian securities in book-entry form and records share charges. In the financing, the collateral shares sit in the borrower's account at the designated custodian, over which the lender takes security; see the charge and custody stage.
CDS accountCentral Depository System
A Central Depository System account in which a holder's Bursa Malaysia–listed shares are held electronically.
Custodian托管人
A licensed institution at which the borrower opens an account to hold the charged shares for the term of the financing, and over which the lender takes security. The collateral shares sit in that account, while beneficial ownership is preserved.
HaircutCollateral discount
The discount applied to a share's market value when sizing the loan against it.
Collateral top-up / Margin call追加保证金
A demand to add collateral or repay part of the loan if the share price falls below an agreed level.
Loan terms
LTVLoan-to-Value
The loan amount as a percentage of the charged shares' market value.
TenorLoan term
The length of the loan, commonly 12–36 months.
RecourseLender's remedy
Whether the lender can pursue the borrower's other assets for a shortfall. Non-recourse: limited to the shares. Full-recourse: borrower personally liable. Limited-recourse: in between. See recourse profiles.
Profit rate (Shariah)利润率
The return on a Shariah-compliant facility, expressed as profit rather than interest.
Liquidity & risk
Free float自由流通量
The share of a company's stock available for public trading, excluding locked-in strategic holdings.
ADTVAverage Daily Trading Value
The average value traded per day; a key liquidity input to LTV.
Volatility波动率
How much a share's price fluctuates; higher volatility means a more conservative LTV.
ConcentrationPosition size
The size of a single position relative to the stock's float and daily volume.
Regulation & disclosure
Securities Commission MalaysiaSC · 证券监督委员会
The statutory regulator of the Malaysian capital market.
Capital Markets and Services ActCMSA 2007
The principal statute governing Malaysia's capital markets and licensed activities.
Take-overs Code33% · MCTOM 2016
The Malaysian Code on Take-Overs and Mergers 2016; reaching 33%, or creeping by more than 2% in six months between 33% and 50%, can trigger a mandatory general offer.
Shariah Advisory CouncilSAC
The SC body that classifies listed securities as Shariah-compliant, with the list updated periodically.
From terminology to terms.
If a term here describes your situation, a senior principal can take it further. Confidential, no obligation.