KUALA LUMPUR: Bursa Malaysia Bhd today announced that it has reduced the daily market capitalisation requirement for companies allowed to short sell from RM500 million to RM200 million.
This is after Bursa Malaysia expanded its criteria for "Approved Securities" or securities that have met the criteria outlined by Bursa Malaysia and possibly be used for securities borrowing and lending and short selling purposes, effective today.
"The revision is part of Bursa Malaysia's ongoing commitment to fostering a dynamic and vibrant market, by offering market participants a broader selection of Approved Securities aimed at meeting investors' evolving needs," it said in a statement.
Bursa Malaysia also said the criteria expansion will allow investors more ability to manage portfolios and improve vibrancy in Securities Borrowing and Lending activities which is a key component of a well-functioning capital market.
Chief executive officer Datuk Muhammad Umar Swift said Bursa Malaysia is solidifying its commitment to improve market efficiency by broadening access and choice for investors.
"As a maturing market, it is vital that we offer a marketplace with robust facilities to cater to the differing needs of investors, while remaining focused on ensuring a vibrant, fair and orderly market," he said.
Careful selection is decided based on both quantitative and qualitative criteria to make sure sufficient liquidity and the integrity of the market is maintained, when updating the list of "Approved Securities", which is available on the Bursa Malaysia website and reviewed every six months.