Enforcement
We take a very strict view of breaches to our Business Rules and Listing Requirements and undertake enforcement proceedings and actions according to the severity of the breach as these infractions have the potential to undermine investors' rights and protection.
Enforcement Approach
In our commitment to deter and reduce breaches of our rules, we continue to focus on swift and strict public enforcement action. Our approach to market enforcement is two-pronged to ensure effective enforcement with greater outcome:
- We prioritise our enforcement actions in respect of Bursa Malaysia Rules and Bursa Malaysia Listing Requirements breaches which have a material impact to the market
- We place greater emphasis on directors in respect of Bursa Malaysia Listing Requirements breaches by listed issuers
Due process involved in enforcement action and right of defaulting party
In undertaking enforcement action, due process will be accorded where the defaulting parties are given opportunity to provide explanation. The enforcement decisions will be made by the relevant regulatory committees of Bursa Malaysia (i.e. Market Participants Committee, Listing Committee and Appeals Committee) which essentially comprise of independent external parties/industry experts.
Factors taken into consideration in deciding the sanction to be imposed
In deciding the appropriate sanction to be imposed for a breach of the Bursa Malaysia Listing Requirements and Bursa Malaysia Rules, a variety of factors are taken into consideration according to the circumstances of each individual case. The factors taken into consideration include, amongst others, public interest/deterrent element of the proposed penalty, antecedent character and background of the defaulting party, nature of the breach and circumstances and manner under which the breach was committed, mitigating and aggravating factors. As such, depending on the outcome of the assessment of the various factors in relation to the facts and circumstances of each individual case, the actions/ sanctions imposed may also vary even for the same breach by different parties.
Under the Bursa Malaysia Listing Requirements, enforcement action can be initiated against directors who are found to have contravened specific obligations imposed on the directors or where there is a breach committed by the listed issuers and the said director is found to have caused, aided or abetted or permitted the commission of the breach by the listed issuer. In ascertaining whether the director has caused, aided or permitted the commission of the breach by the listed issuer, Bursa Malaysia will examine the culpability of each director including roles and responsibilities of each director in the listed issuer and representation and justifications provided.
Type of sanctions
The type of sanctions that may be imposed for a breach of the Bursa Malaysia Listing Requirements and Bursa Malaysia Rules include:
- reprimand (private or public)
- fines
- remedial actions
- suspension
- de-listing (against listed issuers for breaches of the Bursa Malaysia Listing Requirements) or striking off/ termination of participantship
- any other action deemed appropriate
Consultation with the Securities Commission on enforcement
In initiating and undertaking enforcement actions, Bursa Malaysia adopts a consultative approach in working together with the Securities Commission to ensure effective regulation of the capital market. This is particularly pertinent when there is contravention of both rules of Bursa Malaysia and the law under the purview of the Securities Commission. In such circumstances and based on the facts and evidence, Bursa Malaysia will consult the Securities Commission as to the appropriateness of initiation of enforcement action by Bursa Malaysia.