Proposed Amendments to the Main Market and ACE Market Listing Requirements
- Key message: Bursa Malaysia issued a consultation paper on 30 August 2019 seeking public feedback on the proposed amendments to the Main Market and ACE Market Listing Requirements with the following key proposals:
1. Enhancing requirements relating to new issue of securities:
(a) New disclosures; including details and status of previous fund raising exercises
(b) Imposing a “50% limit” on convertible securities; and
(c) Announcement of Dividend Reinvestment Scheme share price closer to the book closing date.
2. Immediate announcement of material loan covenants linked to controlling shareholder.
3. Cooling-off period for independent directors
The proposed amendments are part of Bursa Malaysia’s continuous efforts to ensure a balanced regulatory framework that provides adequate levels of investor protection while ensuring that it does not result in burdensome compliance costs nor impede ease of doing business and growth.
- What you should think about: Relevant stakeholders should evaluate the proposed amendments and provide feedback to Bursa Malaysia by 31 October 2019.