Brokers demand cash upfront for purchase of SERBADK 5279 SERBA DINAMIK HOLDINGS BERHAD securities

Brokers demand cash upfront for purchase of  SERBADK 5279  SERBA DINAMIK HOLDINGS BERHAD securities

KUALA LUMPUR (May 9): Brokers have demanded cash upfront for purchase of beleagured Serba Dinamik Holdings Bhd securities which resume trade on Monday (May 9).

Bursa Malaysia Securities Bhd had announced that the trading suspension of Serba will be lifted and trading will resume with effect from 9am on Monday.

In a  note to its clients, Affin Hwang Investment Bank said that effective Monday, the cash upfront requirement shall be imposed on any buy orders for Serba and its warrants.

“If you wish to buy Serba and/or its warrants, please ensure you have sufficient cash in your trust account and contact your dealer’s representative;

“Serba and its warrants are classified as NON-MARGINABLE counters and no value is given to the stocks in term of collateral valuation,” it said.

Meanwhile, in an email to Kenanga remisiers, they were told that "due to the uncertainties of Serba Dinamik's financial condition and the Special Independent Review, with effects from Monday (May 9), purchases involving Serba Dinamik's securities are not permitted except with 100% CASH UPFRONT prior trade execution".

"Upliftment in BTX can be done at the branch level, please remember to suspend back once the order(s) has been keyed-in," they were told.

http://www.theedgemarkets.com/article/brokers-demand-cash-upfront-purchase-serba-dinamik-securities