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Covid-19

Measures by the securities commission and bursa malaysia to assist the capital market affected by the coronavirus (covid-19) outbreak

The Securities Commission Malaysia (“SC”), Bursa Malaysia Berhad (“Bursa”) and the Government of Malaysia are working together to implement capital market-related measures to support the Malaysian economy amid the COVID- 19 outbreak. The measures taken by SC and Bursa are as follows:

  1. (1)  suspension of short-selling until 30 April 2020. This involves intraday short- selling (IDSS) and regulated short-selling (RSS) as well as intraday short- selling by proprietary day traders, but the suspension does not apply to permitted short-selling (PSS);

  2. (2)  waiver of all listing related fees for a period of 12 months (i) for companies seeking to list on the LEAP and ACE Markets, and (ii) for companies with market capitalisation of less than RM500 million seeking to list on the Main Market; and

  3. (3)  listed corporations which may only hold their AGMs beyond the prescribed 6- month period as stipulated under the Companies Act 2016 can apply to defer their AGMs with the Companies Commission Malaysia. In addition, REITs managers of listed REITs with a financial year-end of 31 December 2019 have been granted 2-months’ extension of time to hold AGMs by 30 June 2020.

SC has further announced the following relief measures which will benefit licensed entities, registered audit firms and licensed individuals, with the aim to ease the cost burden of capital market participants:

  1. (a)  waiver of the SC’s annual licensing fees for 2020 on the core regulated activity of all Capital Markets Services Licence (CMSL) entities with Profit Before Tax of RM5 million or less during Financial Year 2019;

  2. (b)  waiver of the annual licensing fees for the Year 2020 for all individual CMSL holders and Capital Markets Services Representative’s Licence (CMSRL) holders;

  3. (c)  reduction of the minimum Continuing Professional Education (CPE) requirements to 10 CPE points from the current 20 CPE points effective 1 July 2020 for a period of 12 months for all CMSRL holders and Employees of Registered Persons (ERPs);

  1. (d)  reduction of the minimum training requirements to three days from the current five days effective 1 July 2020 for a period of 12 months for Trading Representatives and Marketing Representatives; and

  2. (e)  one-off training subsidy for existing registered firms of Audit Oversight Board (AOB) with less than 10 audit partners, up to RM30,000 per firm for Approved Training Programmes conducted by the Malaysian Institute of Certified Public Accountants (MICPA).

• On 26 March 2020, Bursa announced several relief measures targeted to a broader group of participants within the capital market to help lessen the financial burden and provide greater flexibility during this challenging period. The relief measures are:

 

(a) Rebate of 50% of the annual listing fees for year 2020 for listed issuers that (i) have a market capitalisation below RM500 million as at 31 December 2019;

and (ii) report financial losses as measured by group loss after tax in their quarterly report for a quarter ended on any date between 1 April 2020 to 30 June 2020 (inclusive) notwithstanding the date of the submission of the same.

 

(b) For listed issuers that are in financial distress according to Practice Note 17/Guidance Note 3 (“PN17/GN3 Listed Issuers”) or do not have an adequate level of operations as set out in paragraph/Rule 8.03A of the Listing Requirements (“8.03A Listed Issuers”), the timeframe for submission of the regularisation plan will be extended from the existing 12 months to 24 months from the date they first announce they are PN17/GN3 Listed Issuers or 8.03A Listed Issuers. This applies to listed issuers that trigger the criteria in 2019 and 2020.

 

(c) Listed issuers are granted an automatic 1-month extension for issuance of quarterly and annual reports for the Main and ACE Markets, as well as semi- annual and annual audited financial statements for the LEAP Market, that are due on 31 March 2020 and 30 April 2020.

 

(d) Bursa will remove the requirement on brokers to automatically liquidate their client’s margin account if the equity in the margin account falls below 130% of the outstanding balance. Brokers will also not be required to make additional margin calls or impose haircuts on any collateral and securities purchased and carried in margin accounts due to an unusually volatile market.

 

(e) Bursa will allow brokers to accept other collaterals, such as bonds, collective investment schemes, unit trusts, gold and immovable properties for purposes of maintaining their clients’ margin account if such collaterals are valued as per the broker’s credit policy.

 

(f) All market participants which provide counter services to customers are encouraged by Bursa to limit their operational hours from 10.00 a.m. to 3.00 p.m. during the MCO period.

 

 

 (g) All Authorised Depository Agents (“ADAs”) are now given extension of time for the submission of specified physical CDS transaction forms to Bursa Malaysia Depository Sdn. Bhd.