Frequently asked questions & answers for Secondary Market
What is the Secondary Market?
The Secondary Market is where investors buy and sell notes they already own.
Who can participate in the Secondary Market?
谁可以参与 Secondary Market？
Anyone can participate! However, to sell your Note(s) on the Secondary Market, you must have invested in a minimum of 10 notes. Subsequently, the remaining principal of the Notes selected for “re-selling” or “transfer of rights” must be at least RM5,000. Investors can select either a singular Note (e.g. RM5k) or multiple Notes (e.g. 50 notes of RM100 each) to be bundled as a portfolio for “re- selling” or “transfer of rights”. The reason why such a balance is set is to ensure that the transaction is a meaningful one for both the existing investor and new investor of the Note(s) hosted in the Secondary Market based on the premise that the Secondary Market is to provide early exits for “emergency” funds and for new investors to be able to build a resilient portfolio in a quicker manner which has a direct bearing on risk mitigations as well.
任何人都可以参加 Secondary Market！首先，你需要至少投资了10个标的，并且想“转售的标的的其余本金（Principal Amount）必须至少为至少5,000令吉。 投资者可以选择单张标的（例如RM5k）或多张标的（例如50张标的，每张RM100）捆绑作组合，以“转售”给其他投资者。 设置这样的最低本金数额（minimal principal amount），是要确保本平台对该二级市场托管的交易是有意义的。 对于需要现金“应急”的新投资者来说，二级市场能够以更快的方式让他们建立有弹性的投资组合。
Does the Secondary Market allow partial ‘cash-out’ i.e. selling a Note partially?
Partial ‘cash-out’ is not allowed because the contract on 1 investment is signed with 1 investor and therefore the transfer would also be in full to another 1 investor to make it cleaner and for easier tracking. This is to prohibit the intention of splitting an original investment which is done by a singular individual / entity to multiple individuals / entities thus impacting the integrity of the legal documents entered into of which is drafted in such a way that it is from party A to party B or party B to party C only.
What notes are eligible to be sold on the Secondary Market?
Only notes that have the status of ‘Prompt Repayment’ are allowed to be sold on the Secondary Market. A note may be sold at least 10 days before the next repayment due date provided the previous due payment was made. Subsequently, notes cannot be sold within 10 days of next repayment due date.
Can I sell my notes/portfolio at a discount or at a premium?
You are allowed to set a discount or premium from 0.5% to 5% (selected with incremental of 0.5%).
Will the interest rate of the Note change if it is purchased from the Secondary Market?
如果从 Secondary Market 上购买标的的利率会改变吗？
The interest rate of the Note will not change if it is purchased from the Secondary Market.
Can I resell the notes I have purchased from the Secondary Market?
Yes you can. However, there is a minimum “holding” period i.e. minimum time between the “buying” and “selling” period of 3 months. This is put in place to ensure that investors are still exercising the risk controls in practicing building a portfolio and observing the performance of the portfolio before trading. Because the earnings from a Note or portfolio is already pre-determined upfront, a “holding” period is required to at least allow the investors to experience the performance of the portfolio before trading, be it from the “buying” or “selling” angle.
Are there any limits to how many notes/portfolio I can sell?
There are no limits to how much you can transfer but the transfer needs to be a full sum (principal balance) transfer and to a singular party.
卖出的标的或投资组合总数额没有限制，但必须是全额本金（full principal amount）转售。
Are there any limits to how long my notes/portfolio can be hosted on the Secondary Market?
Yes, the trading period, or hosting period, for each transfer, notes / portfolio, is limited to 10 days. After 10 days, if no one has purchased your notes / portfolio, the ownership of the notes / portfolio is retained by you for a minimum of 30 days before you are allowed to sell the notes / portfolio again.
Can I buy note(s) that I may not necessarily qualify for on the Secondary Market? For example, I am not a ‘Go for 100’ member, will I be able to buy a Biz-Lazada note (only available to ‘Go for 100’ members) on the Secondary Market?
如果我不是‘Go for 100’的会员，我可以在二级市场购买 Biz-Lazada 的 note 吗？
Yes, you can. You can also buy the note if it is a part of a portfolio on the Secondary Market.
Why do I not see any functions/tabs to allow for selling / cannot sell my notes on the Secondary Market on my account homepage?
This is because none of your notes meet the qualifications to be sold on the Secondary Market. When your notes do meet the qualifications, a ‘Sec Mkt SELL’ tab will appear on the left-hand side of your account’s homepage.