Bursa Malaysia Berhad has issued a consultation paper seeking public feedback on the proposed amendments to the Rules of Bursa Malaysia Depository Sendirian Berhad 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
- Dispensing with the requirement to deposit jumbo certificates with Bursa Depository and removing the references to scrips, where relevant;
- 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
- introducing ‘transitional provisions’ to facilitate smooth migration towards dematerialisation in respect of securities which are presently deposited with Bursa Depository.
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.