1. Background

The Shares2share facilitates the donation of listed securities towards charity. Investors with odd lots may find Shares2share particularly attractive as some may find it cumbersome to manage their odd lots, owing to the cost of disposal that may be high comparable to its value. The Shares2share enables investors to donate their listed securities in a convenient manner, for the benefit of society and the environment while contributing to the UN Sustainable Development Goals (SDGs), a universal blueprint for a more inclusive and sustainable future.

2. Objective

• To make cost-effective and easily accessible platforms for investors to donate their securities towards charitable causes
• To create additional funding avenues for selected charitable organisations through impact investment to facilitate positive change for the environment and society whilst contributing to the United Nations Sustainable Development Goals
• Leveraging the capital market to rally market participants towards doing good for people and planet

3. Yayasan Bursa Malaysia (YBM) : Shares2share Administrator

Donations towards Shares2share will be managed and monitored by YBM. YBM has received approval under subsection 44(6) of the Income Tax Act 1967 so that donors who donate cash to YBM and who receive official receipts for their donations (Tax Receipts) may claim a tax deduction for their donations.

The Shares2share administrator, YBM, will perform the following functions:

• Monitor donated securities that have been credited into the relevant CDS accounts
• Manage the sale of the donated securities
• Facilitate the selection of beneficiary Charitable Organisations
• Manage the distribution of funds to the approved Charitable Organisations and initiatives
• Publish information on usage of funds, as provided by the approved Charitable Organisations

4. Eligible Listed Securities for Donation under Shares2share

All listed securities will be allowed for donation to Shares2share EXCEPT the following:

• Stocks listed on LEAP Market
• Delisted stocks on the stock exchange
• Structured Warrants
• Leveraged & Inverse Exchange Traded Funds
• Non-equity securities
• Securities classified as PN17 and GN3.

5. Donation Models

Donors may choose to make either one of 2 types of donations.

Model 1

Under Shares2share, donors can donate their listed securities without the need for Tax Receipts.

Donors will transfer listed securities to YBM's CDS account, and proceeds from the sales of the donated stock will be given to charitable organizations by YBM.

Model 2

Donors who prefer to receive a tax receipt for their listed securities can do so through Shares2share.

6. Charitable Organisations

Charities must fulfill the following criteria to be eligible for Shares2share funding:

Selection Criteria:

• An institution or organisation that is not managed or operated for profit seeking purpose, that has been approved under subsection 44(6) of the Income Tax Act 1967 (ITA).
• The organisation must be in operation for a minimum of 5 years with a proven track record of delivering positive impacts.
• No previous actions have been taken against the organisation for breaches of relevant laws, guidelines or rules issued by the relevant authorities.
• The organisation supports any one or more of the Sustainable Development Goals through its activities, projects or initiatives (while being in line with the causes that are permitted to be supported by Yayasan Bursa Malaysia under its constitution*)

Approved Charitable Organisations

7. Participating Organisations of Shares2share

The following participating organizations will facilitate the necessary steps for clients to transfer listed securities into the EAN account of Shares2share by opening an account on behalf of their clients:

8. Selection Committee (SELCOM)

To ensure that the funds received under Shares2share are administered with independence and transparency, YBM has established an independent Selection Committee (SELCOM) to make key decisions regarding the usage of the funds.

Responsibilities

The SELCOM shall deliberate, decide and be responsible for the following:

• Determination of the eligible listed securities for Shares2share
• Approval of the criteria for the selection of Charitable Organisations and the projects that will be supported by Shares2share funds
• Approval of shortlisted Charitable Organisations that have undergone due diligence (undertaken by YBM) for selection to be beneficiaries of Shares2share funds
• Approval of the list of projects or initiatives by the selected Charitable Organisations to be supported by Shares2share funds and amounts to be granted
• Such other responsibility as may be assigned by the YBM Board

SELCOM Members