Malaysia Securities Exchange: Companies To Face Suspension For Delay In Submission Of Financial Statements

Companies listed on the Malaysia Securities Exchange Berhad (MSEB) which delay the submission of their financial statements to the MSEB for a period exceeding THREE (3) MONTHS will face suspension in the trading of their securities with effect from Thursday, 1 April 2004.

Chief Regulatory Officer Encik Md Nor Ahmad said the policy is a significant step for public listed companies, shareholders and investors.

"The policy is part of the on-going effort by MSEB to enhance compliance of the MSEB's Listing Requirements in the interest of maintaining an orderly and fair market in the securities traded on the Exchange.

"The policy will further contribute to the objective of disseminating material information in a timely manner in order to maintain a fair and orderly market in the securities traded on the Exchange as timely release of the financial statements is crucial to informed investment decisions," he said.

Paragraph 9.22 of the Listing Requirements stipulates that a listed issuer must give the Exchange for public release, an interim financial report that is prepared on a quarterly basis as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year.

Paragraph 9.23 of the Listing Requirements stipulates that a listed issuer must ensure that :-

the annual report shall be issued to the listed issuer's shareholders and given to the Exchange within a period not exceeding 6 months from the close of the financial year of the listed issuer; and
the annual audited accounts together with the auditors' and directors' reports, shall in any case, be given to the Exchange for public release, within a period not exceeding 4 months from the close of the financial year of the listed issuer unless the annual report is issued within a period of 4 months from the close of the financial year of the listed issuer.

(the quarterly report, the annual audited accounts and the annual report will be collectively referred to as "the Prescribed Financial Statements")

Without prejudice to any enforcement action that may be taken by the MSEB against a listed issuer in respect of a breach of Paragraphs 9.22 or 9.23 of the Listing Requirements, the MSEB will impose suspension on the trading of the securities of the listed issuer where the listed issuer delays the submission of any one of the Prescribed Financial Statements for a period exceeding THREE (3) MONTHS from :-

the respective due dates for submission of the Prescribed Financial Statements as set out under Paragraphs 9.22 and 9.23 of the LR ("the Due Dates"); or
the expiry of any extension of time which may be granted by the Exchange for the submission of the Prescribed Financial Statements ("the Extended Due Dates").

The suspension shall be effected on the market day following the expiry of THREE (3) MONTHS from the Due Dates or the Extended Due Dates, as the case may be, and will only be uplifted on the market day following the submission of the outstanding Prescribed Financial Statements.

In accordance with this policy, listed issuers which have failed to submit the respective Prescribed Financial Statements for a period exceeding THREE (3) MONTHS as at 31 March 2004 will face suspension of the trading of their securities with effect from 9.00 am, Thursday, 1 April 2004.