Tuesday 25 June 2013

Not so reliable HLebroking

TDM undergoes 1 into 5 shares split on 25 June 2013 (ex-date). According to TDM's company's announcement dated 17 June 2013, shareholders can start selling the share split shares from 25 June onwards
    "Bursa Malaysia Securities Bhd would like to clarify that on the basis of settlement taking place on 28 June 2013 with share split TDM shares of RM0.20 sen each, any shareholder who is entitled to receive TDM share split shares, may sell any or all of his TDM shares arising from the share split beginning the Ex-Date (25 June 2013).

    For example, if Mr X purchases 100 TDM shares on cum basis on 24 June 2013, Mr X should receive 100 shares on 27 June 2013. As a result of the share split, a total of 500 TDM shares will be credited into Mr X's CDS account on the night of 27 June 2013 being the Book Closing Date. Therefore, Mr X can sell the share split shares of 500 on or after the Ex-Date ie from 25 June 2013 onwards."
However, the trading system of HLeBroking does not allow shareholders from selling the shares online on 25 June 2013 as the additional shares arising from the share split was not reflected in the system (in the trading info page).

Called the helpdesk 20 minutes before the opening bell but the officer attended to me could not resolve the problem, insisting that I could only sell the shares on 28 June 2013 after the share split shares have been deposited into my account, despite concurring with my interpretation of the example given in the company announcement.

I then dropped an email to the helpdesk to highlight the issue. Credit has to be given to their responsiveness. I received a call in 5 minutes. A solution was provided. I have to sell through phone call instead of putting in trade order online. The difference in brokerage between trade made through phone call and online will be refunded in 3 weeks.

My frustrations are:
i) Inconvenience and delay in execution of trade due to the flaw in trading system
ii) This was not to first occurrence I experienced with HLeBroking. This problem was not rectified even though it had been highlighted previously.
iii) Also, certain smart phones with smaller screen are unable to execute trade as the apps does not has page scroll function and the trade instruction (buy/sell) is located at the bottom of the page. Several clients had made complaints to the company but the issue has yet to be resolved.