KLSE Uplifts Trading Restriction On PM Securities

The Committee of the Kuala Lumpur Stock Exchange (KLSE) has decided to uplift the trading restriction imposed on PM Securities Sdn. Bhd. (PMSSB). The upliftment on PMSSB - formerly known as Pengkalen Securities Sdn Bhd - shall take effect from 9.00 a.m, Thursday, 10 February 2000. KLSE placed PMSSB under trading restriction on 7 May 1998 to give PMSSB the opportunity to improve its financial position in providing a secure conduit for investors to access the stockmarket. The trading restrictions imposed on PMSSB since 7 May 1998 include:- PMSSB was allowed to conduct or execute only selling transactions; PMSSB was allowed to conduct or execute purchase transactions only upon receipt of 100% up front payment; margin purchases were prohibited; direct business transactions were prohibited; and any other form of activities which might increase the potential risk or exposure to PMSSB were also prohibited. The decision to uplift the trading restrictions was made after PMSSB was able to demonstrate to the satisfaction of the Securities Commission and KLSE that it has regularised its financial position and fully complied with KLSE's minimum financial requirements. The regularisation of PMSSB financial position came about upon the successful implementation of the Scheme Of Arrangement with their Scheme Creditors pursuant to Section 176 of Companies Act, 1965. With the upliftment of the trading restrictions, PMSSB may resume normal trading activities as allowed under the Rules of the KLSE.