KUALA LUMPUR: The Securities Commission (SC) is conducting a thorough review of the regulatory framework concerning the issuance of shares by unlisted public companies (UPCs) to enhance investor protection.
In its 2023 Annual Report, the regulator mentioned its involvement in discussions with UPC management and other important stakeholders engaged in fundraising activities.
"These discussions serve to address concerns and emphasise the importance of compliance with relevant laws and regulations governing fundraising endeavours.
"There are increasing regulatory concerns on offerings of shares by UPCs that affects investors. The SC views this seriously and has taken various steps to address the same," it added.
Last year, the SC implemented additional measures to boost the appeal of the equity capital market, including the introduction of fractional share trading, a streamlined transfer process to the Main Market, and initiatives aimed at protecting investors' interests.
On Sept 7, it facilitated the introduction of fractional trading for shares listed on Bursa Securities by stockbroking firms to enhance accessibility to the domestic stock market and make investing more affordable for Malaysians.
A fractional share is a portion of stock that is less than one standard board lot. Fractional share trading will allow retail investors, particularly individuals from the younger generation, with low starting capital, to invest in high value stocks.
In December, the regulator announced an accelerated transfer process to facilitate the promotion of eligible ACE Market-listed corporations to Bursa Malaysia's Main Market, effective from Jan 1 this year.
This is to provide a special pathway to encourage significantly larger and more profitable ACE Market companies with more than RM1 billion market capitalisation to transfer to the Main Market in an expedited manner.