Four Majors Changes in Bursa Malaysia
Starting on 3 August 2009, there will Four Major Changes at Bursa Malaysia:
1) The Main and Second Boards will be merged into a Single Unified Board and will be called the MAIN Market.
2) The MESDAQ Market will be transformed into an alternative market for emerging companies of all sizes and sectors and will be called the ACE Market.
3) Reduction of Tick Size to boost liquidity. (Tick size is the minimum price variation between the buy and sell price of a stock).
The table below shows the differences between the current and new tick sizes.
**Note: The bidding price for buying-in will remain at 10 ticks. The buying-in price will be based on the current tick sizes.
Refer here for New Minimum Bids Structure|Bursa Malaysia
4) Trading halt of stocks for the purpose of disseminating material announcements by listed companies will be shortened to one hour from the current one trading session.
(Trading halt is the temporary halt in trading upon the release of information that has material effect on share price).
Details are as follows:
Media Release by Bursa Malaysia:
MAIN AND ACE MARKETS TO COME ON-STREAM 3 AUGUST 2009 -29 Jul 2009
Bursa Malaysia today reminded that the new board structure, which is the Main Market and ACE Market, is on schedule to be implemented on 3 August 2009.
As part of a market-based approach, the streamlining of the boards structure entails a new regulatory framework for listing and equity fundraising which was announced by the Securities Commission (SC) and Bursa Malaysia on 8 May 2009. With this, Bursa Malaysia’s Listing Requirements has been revamped to cater for the new structure.
Under the new structure, Main and Second Boards will be merged into a single unified board for established companies and will be called the Main Market. The current MESDAQ Market, which is for technology-based and high growth companies, will also be transformed into an alternative market for emerging companies of all sizes and sectors and will be called the ACE Market.
The new board structure provides companies with a clearly defined platform to raise capital, which will enhance efficiency, access and certainty in the fund raising process as well as ensuring that investor protection remains intact.
Following from the change, the FTSE Bursa Malaysia Second Board index will retire while the FTSE Bursa Malaysia MESDAQ index will be renamed as the FTSE Bursa Malaysia ACE index. Eligible Second Board constituents will be absorbed into the Main Market indices. These changes will take effect on 3 August 2009.
Four Majors Changes in Bursa Malaysia |stock market | DISCOVER the Road to Financial FREEDOM!…
Starting on 3 August 2009, there will Four Major Changes at Bursa Malaysia:
1) The Main and Second Boards will be merged into a Single Unified Board and will be called the MAIN Market.
2) The MESDAQ Market will be transformed into an alternative mar…
What a nice blog Alan!
Why Bursa is not a 5-star stock exchange
MANY have wondered why Bursa Malaysia is not a five-star stock exchange (unlike Singapore’s). In fact, our authorities seem very proud every time the FTSE Bursa Malaysia Kuala Lumpur Composite Index experience marginal drops or even rise when the regional or global markets takes a dive.
Two recent episodes should shed some light as to why Bursa is not a five-star stock exchange. The first is the Sime Darby Bhd fiasco, the second is the confusion at Kenmark Industrial Co (M) Bhd. There were many more prior to these.
Our stock exchange is supposed to protect investors by ensuring the following:
● Corporate governance;
● External auditing;
● Internal auditing and
● Independent directors,
With the above four areas properly in place, there should be enough protection. Why have all four areas failed? Corporate governance can be suppressed by the board of directors. External auditors always worry about losing their clients. Independent directors are not really independent; they may have business deals in other companies within the group. They are worried about being replaced. The internal audit committee may also be headed by the not-so-independent directors. There are myriad of reasons for weaknesses within these four areas.
To improve transparency, I would like to suggest that external auditors be given three-year contracts only. This will ensure that existing auditors’ standard of audit will be checked by the incoming group on the expiry of the first group of auditors.
Independent directors must have minimum financial links with the company.
Last but not least, do the right thing. Conduct a post mortem to determine whether the respective parties have failed in their duties – internal and external auditors, independent directors and executive director.
The external auditors for both Sime Darby and Kenmark should be replaced immediately. Fine and blacklist them if they have been found to be negligent.
The Singapore Exchange has built its reputation over the years because the Singapore government would not have accepted the nonsense which happened here.
John KH Lim
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/26/business/6503460&sec=business