KUALA LUMPUR, 30 August 2019 – Bursa Malaysia Berhad today issued a consultation paper seeking public feedback on the proposed amendments to the Main Market and ACE Market Listing Requirements in relation to the new issue of securities and other areas.
According to Bursa, as part of the Exchange’s efforts to ensure a balanced regulatory framework providing sufficient levels of investor protection, the proposed amendments are to ensure it does not disrupt business growth resulting in burdensome compliance costs.
The key proposed amendments include enhancing requirements for the new issue of securities to facilitate better understanding of corporate proposals by shareholders, promote greater business efficacy for listed issuers and strengthen investor protection.
Such as, enhancing the presentation and contents of announcements and circulars by clustering information for better flow and requiring value-add disclosures, allowing the announcement of the issue price for shares from Dividend Reinvestment Schemes at a later date and imposing a limit to an exercise or conversion of convertible equity securities to mitigate the dilution effect to shareholders.
Another amendment involves addressing gaps and enhancing board integrity for greater shareholder protection and confidence through enhancing transparency on material loan covenants, conditions or restrictions linked to controlling shareholders, enhancing transparency and regularization requirements for unlisted subsidiaries or associated companies undertaking corporate rescue mechanisms under the Companies Act 2016 and strengthening the definition of independent directors.
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