KUALA LUMPUR: Bursa Malaysia Bhd has amended the Main and ACE Market Listing Requirements to provide securities holders with an option to subscribe for rights shares, exercise convertible securities and participate in a Dividend Reinvestment Scheme (DRS) electronically.
In a statement today, Bursa Malaysia said although the eCorporate exercise amendments will only take effect for any rights issue, issuance of convertible securities and DRS announced on or after Feb 2, 2021, listed issuers are strongly encouraged to offer the electronic option to their securities holders earlier voluntarily.
Its CEO, Datuk Muhamad Umar Swift, said with advancements in technology, it is timely to modernise and enhance processes that are being performed manually.
“Facilitating the electronic application of corporate exercise will deliver immense sustainable benefits for the capital market. It will provide greater efficiency and improve time-to-market for listed issuers to undertake corporate exercises. For investors, it offers greater convenience and improved customer experience,” he said.
The eCorporate Exercise Amendments require listed issuers to offer an option to its securities holders to perform the following electronically (in addition to the existing manual method) namely, subscription and payment for rights issue; conversion and payment for convertible securities; and election to participate in a DRS.
“The Covid-19 pandemic has created a pivotal time for an increased application of, and reliance on, technology in our marketplace. We will continue to innovate and deliver more new initiatives to improve the investment experience of our valued investors, and to enhance the overall attractiveness of the Malaysian capital market,” he said. – April 24, 2020, Bernama
