BURSA Malaysia surely did not mince its words as trading in the shares/warrants of Sarawak Consolidated Industries Bhd (SCIB) – the sister company of Serba Dinamik Holdings Bhd which initiated legal action against Bursa Malaysia yesterday (Nov 8) – has been suspended with effect from 9am today.
On Nov 3, Bursa Malaysia said SCIB has failed to issue its annual report that includes the annual audited financial statements together with its auditors’ and directors’ reports for the financial period ended June 30, 2021 for public release within the stipulated time frame of Oct 31 pursuant to paragraph 9.23(1) of Bursa Securities’ Main Market Listing Requirements (MMLR).
Pursuant to paragraph 9.28(5) of the MMLR, if a listed issuer fails to issue the outstanding financial statements within five market days after the expiry of the relevant timeframes stated in paragraph 9.23(1) of the MMLR, Bursa Securities has the right to suspend the trading in securities of the company.
“The suspension shall be effected on the next market day after the suspension deadline,” noted the market regulator.
“In view of the above and in the event that SCIB is unable to submit the outstanding AR 2021 on or before Nov 8, trading in the company’s securities will be suspended with effect from 9am on Nov 9 (today) until further notice.”
Coincidentally, Serba Dinamik also had its shares/warrants suspended indefinitely from trading since the afternoon session of Oct 22 for failing to submit the status update of its special independent review (SIR).
This follows claims by Bursa Malaysia Securities Bhd that findings from the SIR’s Factual Findings Update as of Sept 30 have been communicated to three out of four of the company’s independent non-executive directors (INEDs) on Oct 21.
Interestingly, Serba Dinamik has resorted to challenge the market regulator in court over its trading suspension ‘impasse’, justifying that the latter is acting in excess of its power.
“Bursa has no power to direct or instruct Serba Dinamik and furthermore to suspend continuously the trading of Serba Dinamik’s securities,” contended Serba Dinamik’s chairman Datuk Mohamed Ilyas. “The suspension lacked procedural fairness and violated the rules of natural justice.”
Even on the eve of its suspension yesterday (Nov 8), SCIB was traded up 2 sen or 10.81% to close at 20.5 sen with 34.67 million shares traded. – Nov 9, 2021
