The Short Sale Agreement serves as the primary contractual framework for parties engaging in short selling activities within the Malaysian securities market. This document is essential when investors or traders wish to sell securities they don't own, typically to profit from a predicted decline in price. The agreement must comply with the Capital Markets and Services Act 2007, Securities Commission Malaysia guidelines, and Bursa Malaysia's Rules, particularly those governing Regulated Short Selling (RSS) and Proprietary Day Trading (PDT). It includes crucial provisions for margin requirements, settlement procedures, risk management, and regulatory reporting obligations. The document is designed to protect all parties' interests while ensuring market integrity and compliance with Malaysian financial regulations.

1. Parties: Identification of the parties entering into the agreement, including the lender (securities owner) and borrower (short seller)

2. Background: Context of the agreement and brief explanation of the short sale transaction purpose

3. Definitions: Definitions of key terms used throughout the agreement, including technical trading terms and regulatory references

4. Securities Subject to Short Sale: Detailed description of the securities to be sold short, including quantity, type, and identification numbers

5. Trading Terms and Conditions: Core terms governing the short sale transaction, including execution parameters and trading restrictions

6. Margin Requirements: Specifications for initial and maintenance margin requirements, including calculation methods and margin calls

7. Settlement Procedures: Procedures for settling the short sale transaction, including timing and delivery requirements

8. Representations and Warranties: Standard representations and warranties from both parties regarding authority, capacity, and regulatory compliance

9. Risk Disclosure: Mandatory risk warnings and acknowledgments related to short selling activities

10. Fees and Charges: Details of all applicable fees, charges, and commission structures

11. Events of Default: Definition of default events and consequences thereof

12. Termination: Conditions and procedures for terminating the agreement

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes