These amendments which will take effect on Tuesday, 10 February 2004 have been undertaken in consequence of the recent amendments to Schedule 1 of the Securities Commission Act 1993 (SCA) exempting public companies undertaking bonus issues and ESOS from procuring the approval of the Securities Commission.
With these amendments, public companies seeking listing on MSEB and public listed companies on MSEB (collectively referred to as companies) which undertake to issue and list securities arising from bonus issues and/or ESOS on the MSEB need only apply to MSEB. Therefore, with effect from 10 February 2004, listing applications in relation to bonus issues and/or ESOS must be made to MSEB and the companies would need to comply with the requirements in relation to the bonus issues and ESOS as prescribed under the LR and MMLR respectively.
These amendments also introduce certain liberalisations to the previous regulatory requirements, particularly in relation to ESOS. These liberalisations include the option under the LR and MMLR for the companies to extend ESOS to their non-executive directors and in relation to the LR, an increase in the percentage of shares that may be issued under an ESOS from 10% to 15%.
Md Nor Ahmad, Chief Regulatory Officer of MSEB said the amendments are of significant benefit to the capital market.
"A key objective of the amendments is to strike a balance between enhancing market regulations including ensuring high standards of investor protection and market integrity are maintained and the promotion of business efficacy whilst being mindful of the cost of regulations to regulators and the industry.
"Whilst companies previously needed to apply to both SC and MSEB for listing of securities arising from bonus issues and/or ESOS, with these amendments, the MSEB will be the one-stop agency.
"This is yet another effort by Securities Commission and MSEB to enhance the efficiency of the fund-raising activities in the capital market," Md Nor said.
The key changes relating to amendments to the LR and MMLR are summarised in Appendix I.
For further information or any enquiries on the amendments, kindly contact:-
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Contact Persons: Ms Emilia Tee (Ext 1016) |
