Suspension of Regulated Short Selling on Bursa Malaysia to be Uplifted on 1 January 2021

17 December 2020

Bursa Malaysia Berhad issued a media release on 16 December 2020 to announce that the temporary suspension of Regulated Short Selling which was imposed by the Securities Commission of Malaysia and Bursa Malaysia Berhad from 24 March 2020 to 31 December 2020¹ will be uplifted on 1 January 2021 subject to the following enhanced control measures being imposed:

the suspension threshold for the daily gross short position for an Approved Securities will be reduced from 3% to 2%; and

an additional suspension threshold of 4% on the aggregated net short position of an Approved Securities under Regulated Short Selling will be introduced.

Details of the modifications to be made to the Directives on Regulated Short Selling No. 8-002 to implement the enhanced control measures are set out in Participating Organisations’ Circular No. R/R 15 of 2020 issued by Bursa Malaysia Securities Berhad on 16 December 2020.

To effect the upliftment of the suspension of Regulated Short Selling, the application of Part C of Chapter 8 of Rules of Bursa Malaysia Securities Berhad, Directives on Regulated Short Selling No. 8-002 and Directives on Regulated Short Selling – Approved Securities No. 8.22(5)-001 will be reinstated from 1 January 2021.

The temporary suspension of Intra-Day Short Selling and Short Selling of Day Trading Eligible Securities by Proprietary Day Traders on Bursa Malaysia will be further extended from 31 December 2020 to 28 February 2021.²

¹ The suspension of Regulated Short Selling was initially due to expire on 30 April 2020 but was extended to 30 June 2020 and 31 December 2020.

² Intra-Day Short Selling and Short Selling of Day Trading Eligible Securities by Proprietary Day Traders have hitherto been suspended at the same time and for the same periods as the suspension of Regulated Short Selling.

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Suspension of Regulated Short Selling on Bursa Malaysia to be Uplifted on 1 January 2021