Md Nor Ahmad, Chief Regulatory Officer of Bursa Malaysia said that as a whole, the Amendments are part of Bursa Malaysia's continuous effort to develop a dynamic and robust capital market.
The Amendments in relation to ESOS are consistent with the approach taken in connection with adjustments relating to warrants whereby the formulas for adjustments are expressly set out in the relevant documents for approval of shareholders. This approach is also in line with a disclosure-based regulatory regime.
The key Amendments in relation to ESOS allow listed issuers to apply any formulas for adjustments to the price or number of shares to be issued under an ESOS which have been approved by shareholders. These formulas for adjustments must be set out in the bylaws of the scheme.
The Amendments in relation to Public Spread, provide clarification on Bursa Securities’ current practice. The Amendments clarify that Paragraph 8.15(5) of the LR which provides for de-listing in situations where 90% or more of the listed issuer’s shares are held by a shareholder either singly or jointly with its associates applies to corporate proposals other than take-overs such as schemes of arrangement, amalgamation or reconstruction pursuant to section 176 of the Companies Act 1965.
The Amendments also incorporate a new provision, Paragraph 8.15(6) of the LR, which clarifies Bursa Securities’ current practice in relation to de-listing in such situations.
"We have put out the Frequently Asked Questions (FAQ) on the amendments on our website www.bursamalaysia.com which defines the scope of amendments and will assist listed issuers in complying with the Amendments," Md Nor said.
