Bursa Malaysia

Pin Menu

Click here to unpin menu.
You're here: Market » Home » Regulation » Enforcement » Key Enforcement Cases » Enforcement of Bursa Malaysia Rules » Breaches relating to Contract Amendments
AskListing@Bursa | Bursa LINK

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 as well as market integrity.

Breaches relating to Contract Amendments

Key Enforcement Cases

Enforcement of Bursa Malaysia Rules: Breaches relating to Contract Amendments

POs

From 2004-2011, Bursa Malaysia has taken 26 enforcement actions with imposition of fines up to RM125,000 on POs for their lapses of supervision and monitoring on the contract amendments carried out by their Dealer's Representatives (DRs) and for failing to ensure that their DRs complied with the contract amendment rules (CA Rules). Thereafter, the number of enforcement actions for similar breaches had significantly reduced.

DRs

  1. Between 2004 and 2011, 190 enforcement actions have been taken against DRs with fines imposed on DRs ranging from RM1,000 to RM50,000 (upon taking into account the number of instances of non-permissible contract amendments) for carrying out non-permissible contract amendments.

  2. Other than the above instances of contract amendment breaches by DRs where fines were imposed, Bursa Malaysia had also taken enforcement actions against DRs for cases involving contract amendments which had the connotation of market abuses including market manipulation, jobbing and intra-day short selling activities. In such cases, more severe sanctions were imposed including striking off from the Register or suspension in addition to the imposition of fine.