Markets
Upping the ante against Bursa violators
Shalini Kumar | 14 Jul 2017 00:30
Gone are the days when listed companies will be let off the hook easily for failure to comply with Bursa Malaysia’s Listing Requirements (LR). The frontline regulator has been tightening the screws on companies that repeatedly flout the rules.

The writing is on the wall judging from a June 20 public reprimand on Lay Hong Bhd alongside fines totalling RM750,000 meted out to the company’s eight directors for furnishing inaccurate responses to the unusual market activity (UMA) queries from Bursa Securities.

The local integrated poultry player was in hot soup following breaches to paragraphs 9.16(1)(a) and (c)(i) of the Main Market LR in respect of two UMA responses dated Nov 3, 2015 and Jan 19, 2016 respectively.

In Bursa’s view, both responses to its UMA queries “were not accurate, balanced and fair, and failed to contain sufficient information” for investors to make informed investment decisions given their failure to disclose – and in fact denied – an impending corporate exercise involving a proposed bonus issue, share split and issuance of free warrants, among others.

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