Chief Executive Officer of Bursa Malaysia Berhad, Yusli Mohamed Yusoff said, “The introduction of ETFs will expand the range of investment options available to investors as well as further build liquidity within the equity market in Malaysia.”
Chief Legal Officer of Bursa Malaysia Berhad, Selvarany Rasiah said the ETF Amendments have been made in conjunction with the issuance of the new Guidelines On Exchange Traded Funds (“ETF Guidelines”) by the Securities Commission (SC). The latter took effect from 21 June 2005.
“The ETF Amendments facilitate the listing and quotation of ETFs on Bursa Securities and provide for the post listing obligations of the ETFs to accord investor protection. They are a part of Bursa Securities’ continuous effort to develop and maintain a dynamic and robust capital market in Malaysia,” Selvarany Rasiah said.
Key Changes
The key changes are as follows:-
- Addition of a new definition of “ETF”, which follows the definition under the ETF Guidelines;
- Prescription of the minimum contents of the deed of an ETF;
- Incorporation of a new provision on application for listing and application for quotation of an ETF, as well as the contents of such applications. Bursa Securities will require a management company of an ETF to submit an application for listing and application for quotation based on the entire fund size that has been approved by the SC; irrespective of whether the units will be issued upon or subsequent to listing;
- Prescription of announcements to be made on a real time or near real time basis or daily basis; and
- Prescription of new requirements on immediate announcements to be made in relation to an ETF.
The complete text of the ETF Amendments and questions and answers on such amendments are available on the Bursa Malaysia’s web-site at www.bursamalaysia.com.
