Bursa Malaysia proposes LR amendments to boost fund-raising transparency

KUALA LUMPUR: Bursa Malaysia Securities Bhd has proposed amendments to the Main Market and ACE Market Listing Requirements (LR) to, among others, boost the transparency on fund-raising exercises involving new securities issuance.

The exchange today issued a consultation paper seeking public feedback on these proposed amendments to the LR in relation to new issue of securities and other areas.

In a statement, it said the key proposed amendments include:

(a) enhancing transparency on fund-raising exercises involving new issue of securities through enhanced disclosures in relation to placement exercises, status of utilisation of proceeds raised and past equity fund-raising exercises where the proceeds raised have yet to be fully utilised;

(b) enhancing the employee share scheme framework by subjecting a share grant scheme to the same restriction on the total number of shares issued under a share issuance scheme, and enhancing transparency pertaining to the options or shares granted under an employee share scheme based on categories of participants;

(c) requiring disclosure of a chief executive officer’s remuneration on a named basis for listed corporations, closed-end funds and business trusts;

(d) allowing a financially distressed listed issuer or a listed issuer with inadequate level of operations to undertake interim corporate proposals pending regularisation of its condition only in exceptional circumstances; and

(e) requiring adherence to chain listing requirements if a listed issuer wishes to list its subsidiaries on any stock exchange.

“The proposed amendments are part of the exchange’s continuous efforts to ensure that the LR remain fit for purpose in line with the rapidly evolving capital market while promoting greater transparency in the marketplace.

“The exchange welcomes views and feedback from the public on the proposed amendments above,” said Bursa Malaysia.

For full details of the consultation paper and the proposed amendments, refer to the Bursa Malaysia website at: https://www.bursamalaysia.com/regulation/public_consultation.

Interested parties are invited to submit their comments and feedback by Jan 26, 2024, according to the statement. – BK