Research providers in Malaysia typically cover only the top 100 stocks listed on Bursa Malaysia. Listed companies which receive little or no research coverage are likely to be negatively impacted as they would not appear on investors' radar.
To address this issue, The CMDF-Bursa Research Scheme (CBRS) was launched in June 2005 to facilitate the development and usage of equities research in the Malaysian capital market. CBRS is a joint effort between Bursa Malaysia and the Capital Market Development Fund (CMDF) where Bursa Malaysia serves as the Administrator, while CMDF subsidises 50% of the cost of coverage.
Note : Please note that the CBRS research reports are not reviewed by Bursa Malaysia.
Independence and integrity of CBRS is achieved as allocation of participating listed companies to research houses is carried out by Bursa Malaysia, after considering sector expertise and conflicts of interest. Furthermore Bursa Malaysia does not receive revenue from CMDF for its role in providing administrative support and facilitating distribution of the research reports generated.
CBRS is open to the following, subject to the approval of Bursa Malaysia:
The frequency of the research coverage takes into account developments and events that would impact the participating company's financial position, liquidity and prospects of the company including, amongst others, material acquisitions / divestments of assets, change in business direction, change in management team, takeover of the company, etc.
At minimum, the research company is required to produce the following reports for each of the participating listed company allocated to them during the two-year period:
The quality of reports issued will be of similar standard to those that the research companies currently issue on their own. Analysts will exercise industry knowledge and professional judgment when producing research reports. Standard content for the types of reports are as follows:
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