KUALA LUMPUR: The Securities Commission Malaysia (SC) has published a consultation paper seeking feedback on the proposed regulatory framework for equity crowdfunding (ECF).
In a statement today, the SC said the public could provide feedback on the proposed ECF regulatory framework on the its website by Sept 5, 2014 via address or email.
ECF, a new form of fund-raising, allows start-ups or other smaller enterprises to obtain capital through small equity investments from relatively large numbers of investors, using online portals to publicise and facilitate such offers to crowd investors.
The SC said it considered ECF as an alternative funding channel and a crucial and innovative market-based structure to facilitate growth of new small-scale enterprises, which contributed significantly to the national economy.
“It also carries certain financial risk for investors, just like any other investment products.
“It is hence important to provide a properly regulated framework to balance the growth of the ECF industry with achieving appropriate level of protection for investors,” it said. – Bernama