"We certainly believe these efforts will continue to improve and expand the securities industry and make it more competitive and attractive to all participants and further enhance investors confidence," Mohd Azlan said at a press conference after the KLSE’s 24th Annual General Meeting (AGM).
The KLSE’s 24th AGM was successfully completed, with:-
- The minutes of its last AGM, the 23rd AGM held on 20 November 1999 was confirmed.
- The report of the KLSE Committee, the income and expenditure accounts for the year ended 30 June 2000 and the balance sheet as at 30 June 2000 together with the auditors report were all adopted.
- Datuk Mohaiyani Shamsuddin has been re-elected as committee member with effect from 1 January 2001. Datuk Mohaiyani will continue to be Deputy Chairman for the next two years.
- Mr. Peter Leong Tuck Leng and Encik Yusli Mohamed Yusoff are newly elected to the KLSE Committee with effect from 1 January 2001.
- Committee Members Encik Abang Zainal Abidin Abang Ahmad and Encik Johari Hassan will retire from the KLSE Committee with effect from 31 December 2000.
Investors’ Week 2000 is part of a wide range of activities by the KLSE Group to promote informed investing which include:
- continuous upgrading of on-line investment information content to all investors via klse.com.my
- expansion in providing conventional investment information through the KLSE Public Information Centre in Kuala Lumpur and the network of Balai Maklumat BSKL in Johor, Penang and Kuching – with more centres planned next year in Kuantan, Malacca, Ipoh and Kota Kinabalu.
- KLSE’s group participation in various securities and capital market roadshows organised by institutional investors and other regulators to reach urban and rural investors throughout the country
- KLSE’s participation in international investment events and roadshows.
- KLSE’s participation in the national economic action council briefings to students and teaching faculties of universities throughout Malaysia.
For stockbrokers, the shorter settlement period increases efficiency and cost effectiveness, whilst maintaining minimum settlement risks in line with international practice. Cash flow requirements are also reduced.
To keep investors fully informed of the growing interest in technology companies, the KLSE launched the Technology Sector and Technology Index during the year. The main objective was to assist investors to identify technologically innovative companies presently listed, whilst encouraging more such companies to list on the KLSE. This will enable investors to participate even more in the capital raising exercise of fast growing technology companies.
To facilitate identification of public listed companies’ names, the new stock short name was introduced to provide investors and stockbrokers with quick and easy reference to a particular stock.
One of the major developments in the industry was the continued progress made in the consolidation of market institutions in the financial sector and the securities industry. The merger of stockbroking companies will result in universal brokers which are well capitalised offering more professional services to meet investor requirements. With the branching of universal brokers, services to investors can be made more accessible and more personalised. This is further supported by the use of technology such as the Electronic Client Ordering System (ECOS). ECOS enabled order routing and trade confirmation electronically with 40 stockbroking companies approved to implement ECOS, of which 12 stockbroking companies allow investors access via the internet.
Mohd Azlan said the coming together of exchanges further complements the effort in industry consolidation. "With the consolidation of exchanges, the opportunity to bring together supporting organisations such as clearing houses will follow to offer more comprehensive clearing and settlement services.
"Ultimately, we envisaged a single point of contact for investors who will be able to trade a range of cash and derivatives, equity and non-equity products via a universal broker, who is a member of a consolidated exchange to execute the trade, and have the trade efficiently and cost effectively cleared and settled through a common clearing house," he said.
To continue broadening the scope of activities for all investors KLSE has recently launched the Labuan International Financial Exchange (LFX). LFX provides significant opportunities for potential issuers and investors to trade in a wide variety of instruments, whilst taking advantage of the benefits and flexibility offered by the Labuan International Offshore Financial Centre.
In reporting on the enforcement action of the KLSE, Mohd Azlan said KLSE will continue to ensure compliance by stockbroking companies and public listed companies.
"On the status of investigation cases on stockbroking companies, of a total of 776 cases – 304 brought forward from 1999 and 472 initiated in 2000 – 405 cases were completed with respect to disciplinary action on dealers’ representatives, 9 were struck off whilst 19 were fined.
"With respect to public listed companies, there was no let up in ensuring a high level of corporate governance. A total of 124 actions in the form of reprimands and fines were enforced on public listed companies which failed to comply with the listing requirements.
"In terms of investigation cases for possible breaches to the listing requirements – there were 35 brought forward from 1999 and 198 initiated in 2000. Of the total 23 cases – 127 were completed during the year," he said.
Stockbroking companies continue to show commitment to improve with the number of stockbroking companies under trading restrictions reduced from 11 to 8. Public listed companies continue to show a high degree of compliance in submitting quarterly reports with 99% compliance rate recorded as at 30 June 2000.
