Bursa Malaysia New Framework

The Securities Commission (SC) and Bursa Malaysia Securities Berhad (Bursa Malaysia) on 8th May 2009 jointly launched a new framework for listings and equity fund-raisings in one of the most comprehensive reforms to the country’s capital market.

- Allowing efficient access to capital and investments, as well as making Bursa Malaysia a more attractive platform for Malaysian and foreign companies 
- KLSE Main and Second boards will be unified on 3rd August 2009 
which will known as Main Market. Mesdaq will be renamed as ACE Market. 
ACE Market will become an alternative market open to companies of all sizes and from all economic sectors.

Along with the new structure, there is also a significant shift in the regulatory approach with regards to listings and equity fund-raisings.

Read media release here : http://www.klse.com.my/framework
Read listing requirements : http://www.klse.com.my/regulations/

SC Chairman Dato’ Sri Zarinah Anwar said the shift to a more market-based regulatory approach is to ensure greater efficiency and competitiveness without compromising on investor protection.

Since she mentioned "investor protection" I recalled some senior experienced KLSE investor told me, something like:  

"Some numbers of companies de-listed from time to time, some counters that exist 10 years ago are no more in the exchange. It's because the company only interested in making fast money by getting listing. They created all kind of hype when its the listing time  but  after the got their millions they didn't really bother about the listed shares or the company anymore. I myself got caught in several counters holding nothing."

I hope the  "investor protection" part in the new framework as said by SC Chairman can cater that, for a start. We still have a lot of room to improve in the  corporate governance department..