.jpg)
Bursa Malaysia today published two consultation papers seeking public feedback on proposals that are aimed to promote further transparency, quality and efficiency of the Malaysian capital market.
The first paper seeks feedback on various proposed amendments to its Listing Requirements (LR) on the listed issuers' disclosure obligations, corporate governance practices and other obligations (Consultation Paper No. 3/2010). The second paper is on the proposed Corporate Disclosure Guide which seeks to provide clarification and guidance on the listed issuers' disclosure obligations under the LR (Consultation Paper No. 4/2010).
Selvarany Rasiah, Chief Regulatory Officer of Bursa Malaysia said, "The proposed amendments are part of the Exchange's on-going efforts to enhance the regulatory framework for listed issuers to ensure the competitiveness and attractiveness of Bursa Malaysia as a listing and investment destination. Maintenance of market integrity remains our key focus in formulating the proposed amendments, and in so doing, we strive to strike a careful balance between enhancing market regulation and promoting business efficacy."
In coming up with the proposals, the Exchange took into account industry feedback, findings and observations arising from supervision and monitoring activities, stakeholder engagements, and international standards.
Proposal on disclosure obligations, corporate governance practices and other obligations (Consultation Paper No. 3/2010)
In line with Bursa Malaysia's aim of enhancing market quality, this review is mainly focused on providing greater guidance and clarity to the market in the key areas of disclosure and corporate governance. Some of the proposed amendments in this Consultation Paper also seek to promote efficiency in the Malaysian capital market and codify in the LR the existing practices of listed issuers.
The Consultation Paper seeks the public's views on the following key areas:
- enhancing the continuing disclosure and financial reporting obligations of a listed issuer
- enhancing the corporate governance requirements
- reviewing the framework of share scheme for employees
- allowing listed issuers to dispatch documents to their securities holders via electronic means, if it is permitted under the laws
- facilitating listed issuers to pay dividends in shares to their shareholders through a scheme known as "Dividend Reinvestment Scheme"
Proposal on Corporate Disclosure Guide (Consultation Paper No. 4/2010)
The Consultation Paper No. 4/2010 is a proposal to issue a Corporate Disclosure Guide (CD Guide). This Consultation Paper aims to clarify the disclosure requirements set out in the LR and illustrate how the disclosure requirements should be applied in practice. It also sets out best practices for establishing policies and procedures to enable listed issuers to fulfil their disclosure obligations.
"The proposed CD Guide seeks to provide greater clarity and guidance to help listed issuers in better understanding and complying with their disclosure obligations under the LR," said Selvarany Rasiah.
This Consultation Paper should be read in conjunction with Consultation Paper No. 3/2010, particularly on the proposed amendments in relation to enhanced disclosure obligations of a listed issuer, issued by Bursa Malaysia concurrently today.
The LR was reviewed last year, where the primary objective was to enhance the fundraising framework following the merger of the then Main and Second Boards to the current "Main Market", as well as the repositioning of the MESDAQ Market to the ACE Market. "We will continue to work towards ensuring that our regulatory framework remains robust with the ever-changing needs and demands of the market," said Selvarany.
The consultation papers can be downloaded from the Exchange's website at www.bursamalaysia.com. Market participants are encouraged to respond to the consultation papers by completing and submitting the Table of Comments attached with the consultation papers.
The deadline for replies to the consultation papers is 19 August 2010.
