Bursa Malaysia announces amendments to facilitate operations on Surprise Holidays

Bursa Malaysia Berhad (‘Bursa Malaysia’) announced amendments to the following documents that will come into effect on 10 January 2023:  
  • Main Market Listing Requirements;
  • ACE Market Listing Requirements;
  • LEAP Market Listing Requirements;
  • Rules and Directives of Bursa Malaysia Securities Berhad;
  • Rules of Bursa Malaysia Depository Sdn Bhd; and
  • Rules of Bursa Malaysia Securities Clearing Sdn Bhd, 
(severally a ‘Bursa Document’ and collectively ‘Bursa Documents’).
 
The main amendments to the Bursa Documents are to facilitate the continued operations of Bursa Malaysia and its subsidiaries on days declared as surprise holidays. A ‘surprise holiday’ is ‘a day that is declared as a public holiday in the Federal Territory of Kuala Lumpur that has not been gazetted as a public holiday at the start of the calendar year’ (‘surprise holiday’).
 
When a surprise holiday is declared, Bursa Malaysia will decide whether it and its subsidiaries will operate on that surprise holiday, taking into consideration the following factors: 
  • whether the Real-Time Electronic Transfer of Funds and Securities (RENTAS) System, being the financial market infrastructure system, is operating on that surprise holiday to facilitate the clearing and settlement service; and 

  • whether there is concurrence from the Securities Commission Malaysia for the capital markets to remain open on that surprise holiday.1 
If Bursa Malaysia decides to operate on a surprise holiday, it will endeavour to provide advance notice to the industry and the market in a timely manner and will issue a media release to inform the public accordingly.2 The surprise holiday will then be considered a ‘market day’ for the purposes of the Bursa Documents.
 
If Bursa Malaysia operates on a surprise holiday, an entity or person who is regulated under or subject to a Relevant Document must comply with, and give effect to, the requirements specified in the Relevant Document on such day, or within the stipulated timeframe that falls on or includes the surprise holiday. In such event, a listed issuer/ listed corporation is expected to make the necessary arrangements to comply with the requirements in the listing requirements on the surprise holiday, irrespective whether the listed issuer/ listed corporation remains open or otherwise.3
 
According to Bursa Malaysia, the amendments are introduced in response to instances of unplanned or unanticipated holidays that took place in Kuala Lumpur recently. By remaining open on a surprise holiday, Bursa Malaysia will ensure that all transactions that occurred prior to the surprise holiday can be delivered and settled as scheduled, thus provide greater certainty to the capital markets and mitigate any potential market or investment risk that investors may face as a result of the surprise holiday.
 
Alert by Sheba Gumis (Partner) of the Corporate Practice of Skrine. 
 
 

1 See sub-paragraph (i) of Paragraph 1.7 of Annexure 2 (Questions and Answers) for the Main LR) of Bursa Malaysia’s letter dated 3 January 2023  Ref. No.: RPA/JH/TAC/RO(hm)/LD01/23 [Surprise Holiday Amendments] (‘Bursa Malaysia’s Letter’).
2 See sub-paragraph (ii) of Paragraph 1.7 of Annexure 2 (Questions and Answers) for the Main LR) of Bursa Malaysia’s Letter.
3 See Paragraph 2.26 of Annexure 2 (Questions and Answers) for the Main LR) of Bursa Malaysia’s Letter.
 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.