BURSA MALAYSIA SECURITIES BERHAD ISSUED NEW LEAP MARKET LISTING REQUIREMENTS
Bursa Malaysia Securities Berhad (“the Exchange”) has, on 15 June 2017, issued the new LEAP Market Listing Requirements (“LEAP LR”) which governs the listing framework of the LEAP Market.
The Exchange established a new market called the LEAP Market that is aimed at facilitating access by small and medium-sized enterprises (“SMEs”) to raise capital from the capital market. It is a qualified market meant mainly for sophisticated investors.
In addition, the Exchange also amended the Rules of Bursa Malaysia Securities Berhad (“Rules of Bursa Securities”), Rules of Bursa Malaysia Securities Clearing Sendirian Berhad (“Rules of Bursa Clearing (S)”) and Rules of Bursa Malaysia Depository Sendirian Berhad (“Rules of Bursa Depository”) which govern the trading, clearing and depository framework for the LEAP Market.
The LEAP LR, Rules of Bursa Securities, Rules of Bursa Clearing (S) and Rules of Bursa Depository have been duly approved by the Securities Commission Malaysia.
In formulating the rules, the Exchange is guided by the following principles:
(a) Cost efficiency – SMEs are able to raise capital in a cost effective and efficient manner;
(b) Appropriate regulation – An appropriate and proportionate regulatory framework which promote cost effective fund raising and safeguards investor protection; and
(c) Qualified market for sophisticated investors – A qualified market which is meant mainly for sophisticated investors only, who are able to evaluate their investment risks and make informed investment decisions based on the available information in the market.