Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) today issued two consultation papers seeking public feedback on the proposed review of Bursa Malaysia Securities Berhad’s Main Market and ACE Market Listing Requirements (collectively “Listing Requirements”) in relation to the continuing disclosure obligations and interim financial reporting framework under the Listing Requirements.
Consultation Paper on Review & Proposed Changes to Continuing Disclosure Obligations under the Listing Requirements
The review and proposed changes are part of the Exchange’s efforts to progressively simplify the Listing Requirements to commensurate with the state of development in our market. In this regard, the consultation paper focuses on simplifying the post listing continuing disclosure obligations of listed issuers, mainly in respect of disclosures in announcements and circulars relating to transactions, as well as corporate disclosure policies. At the same time, the Exchange is also proposing the removal of certain disclosure requirements which are viewed as posing insignificant risks to shareholders, as well as enhancements to address gaps to safeguard shareholder interest.
The key proposed amendments include the following:
(a) enhancing the presentation and contents of announcements and circulars relating to transactions;
(b) simplifying the Corporate Disclosure Policies and removing repetitious or redundant immediate announcement requirements;
(c) removing the prescribed restrictions in a trust deed or deed poll of debt securities;
(d) requiring immediate announcements on acquisitions and disposals of subsidiaries only if the relevant materiality threshold is triggered;
(e) requiring shareholder approval if there is a material change (25% or more) in utilization of proceeds from an initial public offering or new issue of securities;
(f) requiring a listed issuer to provide a reason in an announcement for a proposed change in its financial year end; and
(g) imposing a requirement to empower the Exchange to require the issuance of an interim audited financial statements by a listed issuer if it changes its financial year end to beyond 18 months from its last financial year end.
The above proposals are aimed at ensuring that the Listing Requirements remain balanced, providing adequate levels of investor protection so as to not impede the ease of doing business and long-term growth of our listed issuers.
Consultation Paper on Interim Financial Reporting Framework under the Listing Requirements
In view of the global debate and diverse views on interim financial reporting regime, the Exchange proposes to seek public feedback on the suitability of the existing quarterly reporting framework in Malaysia. The Exchange intends to encourage and promote an informed, focused and coherent discussion from a broad cross-section of the market to better assess if a change to the current reporting framework is necessary and in the best interest of the Malaysian capital market.
Both consultation papers are available at: http://www.bursamalaysia.com/market/regulation/rules/public-consultation
Interested parties and the public are invited to submit their comments and feedback to Bursa Malaysia by 30 November 2018.
