Economic Report 2013/2014: Measures to enhance capital markets

by **Cals** Sat 26 Oct 2013, 21:07

Published: Saturday October 26, 2013 MYT 12:00:00 AM
Updated: Saturday October 26, 2013 MYT 9:21:18 AM
Economic Report 2013/2014: Measures to enhance capital markets

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A NUMBER of measures has been taken to enhance the liquidity and efficiency of the capital markets, including the Capital Markets and Services (Amendment) Act 2012 (CMSA 2012).
CMSA 2012 comprises guidelines like a new approval framework to distinguish between listed and unlisted capital market products, their characters, differing risk profiles, and applies the appropriate level of regulation that matches the risks attached.
The Act also consists of business trust guidelines, revision of the guidelines on private debt securities and sukuk as well as guidelines on sales practices of unlisted capital market products and the set up of a consolidated capital market compensation fund with a broadened scope to cover private retirement schemes and unlisted capital market products.
Bursa Malaysia had also on Jan 3 implemented a unified “cross-market” surveillance platform for both the equity and derivatives markets to enhance investor protection and ensure a fair and orderly market.
The following month saw the stock exchange amending its rules to introduce some liberations and adopted a more principles-based regime in market regulation that came into effect on May 2.
The modified rules enable participating organisations or securities brokers to enhance their efficiency as well as reduce their business cost without compromising on regulatory aims.
On March 25, Bursa Malaysia made amendments to its rules to facilitate the listing of business trusts on the main board. Business trusts serve as an alternative structure for business enterprises with stable growth and cashflow to raise capital through initial public offerings in the country.
On the same day, the regulator amended the Main Market Listing Requirement to facilitate listings of eligible foreign collective investment schemes such as foreign exchange traded funds or foreign business trusts recognised by the Securitites Commission.
Three days later, it launched eRights to facilitate electronic subscription and payment when subscribing for rights issues as well as the nominee rights subscription e-services to facilitate the electronic rights subscription and payment for nominee companies.
It introduced the “Green Lane Policy” on April 5 to shorten the time to market for equity brokers to commence their new activities, which includes the opening of new branches or electronic access facilities, the provision of margin financing and the commencement of propriety trading that came into effect on May 2.
Bursa Malaysia also amended the main market listing requirements to facilitate the listing of stapled securities, an arrangement under which different types of securities are listed and traded as one security.