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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.

Market Offences/Market Manipulation/Misconduct

Key Enforcement Cases

Enforcement of Bursa Malaysia Rules: Market Offences/Market Manipulation/Misconduct

  1. The need to maintain a fair and orderly market is imperative and for this, Bursa Malaysia has zero-tolerance on any acts or omissions by any party which might threaten/affect the integrity of the market that Bursa Malaysia operates. Bursa Malaysia believes that the market should reflect genuine supply and demand. Bursa Malaysia would not hesitate to take appropriate action including imposing a fine and/or suspension/strike off a person from the Register and bar the person from trading on or through the stock market of the Exchange for any violation which hampers the maintenance of a fair and orderly market.

  2. All licensed persons/entities involved in the dealing in securities and trading in futures contracts including Dealer's Representatives (DRs) and Futures Broker's Representatives (FBRs) must act responsibly as they have obligations under the rules to conduct their business not only in the best interest of their clients but also in the best interest of and for the integrity of the market. They must not engage in any course of conduct including undertake/implement trading strategy/methodology which is likely to damage the fairness or integrity of the markets that Bursa Malaysia operates.

  3. In carrying out its regulatory duties with the objectives of the protection of clients' interests and the maintenance of an orderly and fair market, Bursa Malaysia has taken numerous enforcement actions for breaches of the rules involving market misconducts and abusive trading activities that had created misleading/false appearance of active trading, or the price of/market for the securities/futures contracts and market manipulations.

  4. In determining the type of sanctions taken against the defaulting parties, Bursa Malaysia is guided by the general and specific considerations applicable to the case, amongst others, the nature/seriousness of the conduct or the breach, the duration/frequency of the breach, the impact to the public/market, existence of ill-gotten benefits and whether there were intentional/reckless acts. A violation of the rules which has considerable market impact and causes harm and disruption to the orderly operation of the market is subject to severe penalties.

  5. A range of penalties, ranging from a public reprimand to suspension/striking off from the Register, fine and/or additional CPE condition, were imposed on the defaulting DRs/FBRs who had committed market offences. The sanctions imposed vary depending on the facts of each case, the circumstances leading to the breach, severity of the breach and the extent of the impact on the market caused by the breach.

  6. Bursa Malaysia had taken various enforcement actions against DRs/FBRs who displayed unwarranted conducts which impinged on their honesty and integrity. Severe enforcement actions by striking them off from the Register/suspension were taken so as to protect investors' interests and to preserve the integrity of the market.

  7. In those cases where the breaches committed were not serious enough to warrant immediate suspension of the Registered Person from the dealing activities or striking off, an order of deferred suspension is made to allow close monitoring of the Registered Person's conduct in dealing activities to ensure that similar breach is not committed in the future. Such sanction provides an avenue to the Registered Person to mend his unacceptable conduct and to ensure the proper carrying out of dealing activities. The good behaviour displayed during the deferred suspension period would allow the Registered Person to be exempted from the suspension order made against him. The deferred suspension also acts as an incentive to the Registered Person to conduct himself in an appropriate/professional manner whilst deterring him from committing similar breach.

    Below are case studies/illustrations of some of the cases for which enforcement actions have been taken against defaulting POs/TPs and/or Registered Persons:

    Cases

    • 2016
    • 2015
    • Up to 2014

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