Bursa Malaysia Berhad (“Bursa Malaysia”) today issued a consultation paper seeking public feedback on the proposed amendments to the Rules of Bursa Malaysia Depository Sendirian Berhad (“Bursa Depository”) and the Main Market and ACE Market Listing Requirements (collectively “Listing Requirements”) to facilitate dematerialisation.
Dematerialisation signifies a scripless environment where there will no longer be any physical share certificate or other document issued as evidence of title or ownership of securities. The legal ownership of listed securities and shareholders’ rights shall be evidenced in the register of members of a corporation and Bursa Depository’s record of depositors respectively. The migration towards a dematerialised framework coupled with the enhanced processes will revolutionise our depository services, which form part of Bursa Malaysia’s commitment to continuously transform and enhance our stakeholders’ experience.
In this regard, the Rules of Bursa Depository and the Listing Requirements are proposed to be amended to reflect the dematerialised framework for all securities deposited with Bursa Depository and the changes to facilitate the listed corporations’ migration towards dematerialisation. The proposed key amendments are as follows:
Rules of Bursa Depository
(i) dispensing with the requirement to deposit jumbo certificates with Bursa Depository and removing the references to scrips, where relevant;
(ii) simplifying the process for deposit of securities with Bursa Depository (which includes doing away with the physical deposit and transfer forms) and enhancing the role and function of issuers; and
(iii) introducing ‘transitional provisions’ to facilitate smooth migration towards dematerialisation in respect of securities which are presently deposited with Bursa Depository.
(i) mandating a listed corporation to migrate towards dematerialisation via its constitution, unless it contravenes the laws of the place of its incorporation; and
(ii) removing the requirement for physical forms, content of share certificates and submission of specimen share certificates to Bursa Malaysia.
With these proposed amendments, listing applicants and listed issuers may look forward to a seamless depository process which is more efficient and expedient, whilst investors may benefit from the improved time-to-market in respect of crediting of securities in an initial public offering or corporate exercise. In addition, Bursa Malaysia seeks to promote better sustainable practices by eliminating paper certificates and physical forms through these proposed amendments.
The consultation paper is available at:
http://www.bursamalaysia.com/market/regulation/rules/public-consultation/. Interested parties are invited to submit their comments and feedback to Bursa Malaysia by 24 May 2019.