Bursa Malaysia Berhad (“Bursa Malaysia”) has today released a second consultation paper for its proposed (New) Market on Bursa Malaysia which aims to provide small and medium-sized enterprises (SMEs) greater access to the capital market. The second public consultation paper on the proposed rule framework for the proposed (new) market follows from the Exchange’s first public consultation paper on the business model for the (New) Market, which was issued in September 2016.
Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia, said: “Our role as a stock exchange is to ensure a supportive ecosystem for the development of SME financing. For the (New) Market which serves the SMEs, Bursa Malaysia is very encouraged by the positive feedback from the industry which comprises brokers, advisers, investors and some potential issuers. The industry agreed to the three key guiding principles of the (New) Market which are cost efficiency, appropriate regulatory framework as well as a qualified market that is only meant for sophisticated investors.
“Industry stakeholders have a part to play to ensure that the SME segment continues to thrive and contribute to Malaysia’s economic development. Access to equity funding via the (New) Market aids the growth of the SME sector whilst providing another avenue for sophisticated investors to invest in a transparent and regulated environment. . Therefore, the Exchange looks forward to the industry and general public’s continued engagements by providing feedback on the rule framework for the (New) Market which will help to ensure that the rules, when issued, are practical and balanced,” continued Datuk Seri Tajuddin.
In line with the objective of the proposed (New) Market, the Exchange has taken into consideration the following key principles in formulating the regulatory framework governing the proposed (New) Market, which are:
- SMEs being able to raise capital in a cost effective and efficient manner;
- an appropriate and proportionate regulatory framework which promotes business efficacy and safeguards investor protection; and
- a qualified market which is meant for sophisticated investors only, who are able to evaluate their investment risks and make informed investment decisions based on the available information in the market.
The consultation paper on the rule framework seeks insights and inputs from potential companies, advisers, investors, industry associations and the general public in the following areas:
- the proposed (New) Market Listing Requirements;
- the proposed amendments to the Rules of Bursa Malaysia Securities Berhad; and
- the proposed amendments to the Rules of Bursa Malaysia Depository Sdn Bhd
The consultation paper is available at: http://www.bursamalaysia.com/market/regulation/rules/public-consultation
The industry and the public are invited to submit their comments and feedback to Bursa Malaysia before the closing date of 30 November 2016.
