KLSE Executive Chairman Dato’ Mohd Azlan Hashim said the revamped Listing Requirements, which have been approved by the Securities Commission, is an integral part of KLSE’s continuous efforts to develop a dynamic and robust stockmarket.
"The revamped Listing Requirements is a significant achievement in promoting our market as a hub to raise capital and invest. The effort put into the revamp is set to achieve the continuous objective of further promoting the credibility and efficiency of our market to benefit listed companies, directors, major shareholders and minority investors alike," he said.
Mohd Azlan said in adding new breadth to the foundation of corporate governance in the country, the revamped listing requirements also contributes to a more conducive environment for investment and raising capital in the Malaysian market.
"Aiming for a continuously improving level of corporate governance will ensure that our market remains attractive to investors who will have confidence to continue investing at the KLSE and in the Malaysian economy," he said.
KLSE Listing Requirements comprises the Main Board Listing Requirements introduced in July 1987 and the Second Board Listing Requirements introduced in November 1988. Whilst the various sections of the Listing Requirements have been updated since inception, the revamp of the Listing Requirements is the most comprehensive review of the Listing Requirements to date.
Commenting on the revamp, Mohd Azlan said it involved an extensive process which was meticulously conducted taking into account the views and feedback of industry participants.
"The revamped Listing Requirements is a fine example of a combined effort by both industry participants and regulators to provide comprehensive regulations to further improve the corporate conduct of companies listed on the Kuala Lumpur Stock Exchange.
The industry consultation process, a key component in the revamp, involved professional organisations, industry standards regulators, financial and investment organisations. In the consultation process, which commenced in 1998, the draft revamped Listing Requirements was distributed for written comments to these industry participants before extensive dialogues were conducted with relevant parties and industry experts.
"It is absolutely essential that in addressing regulatory requirements, we continue to preserve an environment that encourages sustained growth and investibility for public listed companies. The revamped Listing Requirements is a crystallisation of all the various industry participants efforts and is a major achievement for the Malaysian securities industry," he said.
Mohd Azlan said KLSE is adopting the practical approach in the implementation of the Listing Requirements.
"The approach is for KLSE to undertake due process to strike a balance between enhancing market regulations and the promotion of business efficacy whilst being mindful of the cost of regulations to the regulator and the industry. "KLSE is also giving adequate time for industry participants before the provisions of the revamped Listing Requirements come into effect," he said.
Mohd Azlan said the revamped Listing Requirements have to be fully considered in respect of its objectives, key improvements and key benefits to industry participants.
