What Is Direct Business Transaction (DBT) in Bursa Malaysia?

If you are moving a large block of shares and do not want to move the market price, a Direct Business Transaction (DBT) is the mechanism Bursa Malaysia provides for exactly this purpose.

This guide explains what DBT is, how it works, who uses it, and why choosing the right broker makes a significant difference — especially when the transaction runs into the millions of Ringgit.

What Is a Direct Business Transaction (DBT)?

A Direct Business Transaction (DBT) is a special type of trade on Bursa Malaysia where two parties — a buyer and a seller — agree on the price and quantity of shares privately, before the transaction is executed and reported to the exchange.

Unlike a regular market trade where buy and sell orders are matched publicly through Bursa’s order book, a DBT is negotiated directly between two brokers on behalf of their respective clients. The agreed trade is then submitted to Bursa Malaysia for reporting and settlement, bypassing the open market entirely.

DBT trades must still comply with Bursa Malaysia’s rules — including minimum lot sizes and price thresholds — but the price discovery happens privately between the two parties, not through the live order book.

How Does a DBT Work?

The process is straightforward:

1. Buyer and seller agree on the stock, quantity, and price privately — often through their respective remisiers or dealers.
2. Both brokers submit the matched orders to Bursa Malaysia simultaneously through their trading terminals.
3. Bursa records and clears the transaction. It appears on the market ticker as a DBT trade, identifiable by its trade type code.
4. Settlement follows the standard T+2 cycle for equities on Bursa Malaysia.

Critically, because the price is pre-agreed, the transaction does not move the market price the way a large open-market sell order would. This is the primary reason institutional investors and high-net-worth individuals prefer DBT for significant block trades.

Who Uses Direct Business Transactions?

DBT is commonly used by:

• Institutional investors — fund managers, insurance companies, and EPF-linked funds moving large shareholdings without disrupting the market.
• Major shareholders and directors — disposing of or acquiring significant stakes in a listed company.
• High-net-worth retail investors — transferring large share positions between accounts or between parties at an agreed price.
• Corporate exercises — placement agents executing private placements or block sales on behalf of issuers.
• Estate and inheritance transfers — moving share portfolios between family members at a mutually agreed valuation.

The common thread: all these parties want price certainty and discretion — two things the open order book cannot guarantee for large quantities.

Why DBT Instead of a Regular Market Trade?

Consider this scenario: you hold 5 million shares of a mid-cap stock with average daily volume of 2 million shares. If you sell all 5 million shares through the open market, your own selling pressure will drive the price down significantly before your orders are filled. You end up selling at an average price well below where you started.

With a DBT, you find a buyer, agree on a price that reflects fair value for both parties, and execute in one clean transaction. No slippage. No price impact. No information leakage to the market before the trade is done.

Why Choose Us for Your DBT?

At Malacca Securities (M+ Global), we offer some of the most competitive DBT brokerage rates in the market:

For transactions of RM1 million and above, brokerage fees are open for discussion. Large-volume clients receive preferential rates tailored to the size and nature of the transaction.

Beyond competitive fees, here is what you get when you execute your DBT through us:

• Experienced remisier with 2,200+ active clients — we have matched buyers and sellers across a wide range of counters and transaction sizes.
• Discretion and speed — we handle the matching and submission process efficiently, minimising the window between agreement and execution.
• Full regulatory compliance — all DBT trades are submitted correctly through Malacca Securities’ licensed platform, fully reported to Bursa Malaysia.
• Access via M+ Global — our trading platform provides real-time portfolio visibility and confirmation once the trade is executed.

How to Proceed with a DBT

If you have a buyer and seller lined up — or if you need help finding a counterparty — reach out directly:

Provide the following when you contact us:

• Stock name and stock code
• Number of shares (lots)
• Agreed price per share (or price range)
• Whether you are the buyer or the seller
• Preferred settlement timeline

We will advise on the applicable brokerage fee, confirm the DBT procedure, and coordinate the simultaneous submission with the counterparty’s broker.

Key Takeaways

• A DBT is a privately negotiated off-market trade between two brokers on Bursa Malaysia — price and quantity are agreed before submission to the exchange.
• It eliminates market impact, slippage, and information leakage — ideal for large block trades.
• Brokerage fee: 0.15% for cash upfront accounts, 0.20% for margin accounts.
• Transactions of RM1 million and above qualify for negotiated rates — contact us directly.
• All DBT trades settle on T+2 and are fully reported to Bursa Malaysia.

Whether you are an institutional fund, a major shareholder, or a high-net-worth investor looking to move a meaningful block of shares efficiently and at low cost, a DBT through Malacca Securities is worth considering. Find out more about why clients choose Dexter Chia as their remisier.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Brokerage fees quoted are subject to confirmation at the time of transaction. Contact us directly for the latest rates and terms.

Ready to execute a DBT or open a trading account? Contact Dexter Chia, AI-Driven Remisier at Malacca Securities Sdn Bhd. M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?