Consultation Paper on Proposed Amendments to Listing Requirements

Bursa Malaysia Berhad (‘the Exchange’) issued Consultation Paper No. 3/2019 (‘CP3/19’) on 30 August 2019. CP3/19 is available in the Public Consultation section of the Exchange’s website.
CP3/19 seeks written feedback from the public on proposed amendments to the Main Market Listing Requirements and ACE Market Listing Requirements (collectively ‘LR’). 
Amongst others, the Exchange proposes to amend the LR to –
  1. enhance the presentation of the disclosure requirements pertaining to new issue of securities;
  1. reduce the time frame for making an announcement on the issue price of securities to be issued under a Dividend Reinvestment Scheme from 30 market days to 20 market days to reduce market volatility of the shares and better reflect the market price of the securities;
  1. extend the current safeguard that limits the number of new shares to be issued in respect of warrants to 50% of the total number of issued shares of a listed issuer to other convertible equity securities such as irredeemable or redeemable convertible preference shares;
  1. enhance the definition of independent directors by –
  1. seek public feedback as to whether the current two year cooling period that applies before an existing or former officer, adviser and person engaged in transactions with a listed issuer can be appointed as an independent director of the listed issuer should be extended to a longer period; and
  1. to exclude a non-independent non-executive director from being appointed as an independent director during the cooling off period;
  1. enhance the LR by requiring a listed issuer to issue immediate announcements on any application by its subsidiaries or major associated companies for judicial management or corporate voluntary arrangement under the Companies Act 2016 and specified material developments in these matters; and
  1. enhance the disclosure requirements in respect of conditions or covenants that are linked to the interests of the controlling shareholders of a listed issuer in material loan or borrowings by a listed issuer.
A more detailed write-up will be issued in due course.
The consultation period for CP3/19 ends on 31 October 2019.