Bursa Malaysia Berhad ('the Exchange') issued Consultation Paper No. 2/2021 on 3 August 2021 to seek public feedback on the Proposed Amendments to the ACE Market Listing Requirements in relation to ACE Market One-Stop Centre ('CP No. 2/2021').
Since 2009, the Exchange has been the approving authority for initial listings ('IPO') on the ACE Market, as well as for all corporate proposals post listing, including secondary fund raising and issuance of new securities by ACE Market listed corporations (except for debt securities). However, the responsibility to review and register prospectuses of applicants and ACE Market listed corporations remained with the Securities Commission Malaysia ('SC').
On 21 July 2020, the SC announced, inter alia, that the entire ACE Market framework, including the prospectus review and registration functions will be transferred to the Exchange. Subsequently, Part III of Schedules 6 and 7 of the Capital Markets and Services Act 2007 were amended on 1 July 2021 to enable the Exchange to assume the ACE Market prospectus review and registration functions from the SC with effect from 1 January 2022.
Following a review of the ACE LR, the Exchange proposes in CP No. 2/2021 to amend the ACE LR in the following key areas:
- to enhance the ACE Market IPO framework by, among others, introducing a mandatory consultation process prior to a submission of an IPO application and incorporating the interest of investors as one of the considerations for an ACE Market IPO;
- to prescribe the requirements in relation to a prospectus, including the obligations and processes to register the prospectus, circumstances where the Exchange may refuse to register the prospectus, the contents and standards of disclosure expected in a prospectus, advertising restrictions, requirements relating to an electronic prospectus and application and requirements on a supplementary or replacement prospectus;
- to enhance the Sponsorship framework predicated on a
market and outcome based approach in ensuring quality submissions
and disclosures by:
- liberalising the eligibility requirements of a Sponsor, to be in line with the recognised principal adviser framework for the Main Market of the Exchange;
- strengthening the role and duty of care of a Sponsor in the discharge of its duties under the ACE LR;
- enhancing the accountability of a Sponsor by extending the regulatory and enforcement ambit to the key officers of a Sponsor involved in submitting certain significant corporate proposals to the Exchange; and
- removing the prescription on how a Sponsor and other relevant parties are to conduct due diligence; and
- to make consequential amendments to align the requirements in the ACE LR with the SC's Licensing Handbook, Guidelines on Submission of Corporate and Capital Market Product Proposals, Equity Guidelines and Prospectus Guidelines.
The consultation period for CP No. 2/2021 ends on 14 September 2021.
Originally published 09 August 2021
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