KUALA LUMPUR: The Securities Commission has announced further reliefs for listed companies, especially those which are under Practice Note 17 (PN17) category.
The SC is also considering additional measures to facilitate greater access to funding for small and midcap companies, as well as micro, small and medium enterprises (MSMEs).
The SC chairman Datuk Syed Zaid Albar said with the Covid -19 pandemic, it required measured responses that consider the longer term impact on market and its participants.
“While the world comes together to combat this public health emergency, we have taken proactive measures to ensure that markets continue to operate in an orderly manner, as access to funding is vital to maintain confidence and ensure the long-term recovery of the market,” Syed Zaid told reporters at a virtual conference on the SC Annual Report 2019 today.
The SC said Bursa Malaysia would provide affected companies listed on the Main Market temporary relief from the PN 17 classification.
The measures will allow companies more time to regularise their financial positions.
“Similar temporary relief from Guidance Note 3 classification will also be provided by Bursa for companies listed on ACE Market.
“This PN17 relaxation will be effective from April 17 this year until June 30, 2021,” the SC said.
The commission also lifted fundraising limits on equity crowdfunding (ECF) platforms, and allowed ECF and peer-to-peer financing (P2P) platforms to operationalise secondary trading, both with immediate effect.
From now until September 30, the government's co-investment fund MyCIF, administered by the SC, has increased its funding matching ratio from 1:4 to 1:2 for eligible ECF and P2P campaigns, to provide additional liquidity into the alternative fundraising space.
Meanwhile, the SC called on the industry to seize the opportunity to accelerate their digitisation transformations and offer more online products and services to investors as the regulator observed a significant increase of new online trading accounts opening in recent months.
The SC will expedite guidelines for holding virtual general meetings and review the rules on take-overs and mergers to facilitate e-service of documents and compliance with regulatory requirements for take-over and merger transactions.
Syed Zaid said the SC remained steadfast in ensuring investor interest was protected during the challenging time.
“We continue to raise investor awareness on scams, as scammers tend to target people during times of uncertainty.
"The SC will take a targeted approach to protect vulnerable investors and minority shareholders. I would also like to remind our intermediaries to remain vigilant and for listed companies to remember their obligations to shareholders and to make timely disclosures,” he said.
The SC assured investors that the Malaysian capital market remained fundamentally strong and was functioning in an orderly manner,.
This is supported by deep domestic liquidity, complemented by the government’s stimulus packages, amidst non-resident outflows.
“Over the years, Malaysia has withstood many crises and the SC has worked closely with the industry to strengthen the capital markets and address systemic weaknesses.
"As a result, the Malaysian players and institutions are better equipped to face the onslaught of challenges arising from this pandemic,” added Syed Zaid.