COVID-19 & MCO: SC And Bursa’s Relief Measures For Listed Issuers

April 3, 2020

On 26 March 2020, Bursa Malaysia Berhad (Bursa) introduced a number of relief measures to help lessen the financial burden and provide greater flexibility in navigating the challenging period due to the COVID-19 pandemic to a wide group of capital market participants.

The measures are summarised below:

1. 50% Rebate on Annual Listing Fees

Listed issuers that:

1. have a market capitalisation below RM500 million (as at 31 December 2019); and

2. report financial losses as measured by their group loss after tax in their quarterly report for a quarter ended on any date between 1 April 2020 to 30 June 2020,

are given a 50% rebate on their annual listing fees for the year 2020.

2. Extension of Time to Submit Regularisation Plan

The timeframe for submission of the regularisation plan is now extended from the existing 12 months to 24 months from the date the PN17/GN3 Listed Issuers or 8.03A Listed Issuers first announce that they fall within the category.

This applies to listed issuers that trigger the criteria in 2019 and 2020.

PN17/GN3 Listed Issuers are listed issuers that are in financial distress according to Practice Note 17/Guidance Note 3.

8.03A Listed Issuers are listed issuers that do not have an adequate level of operations as set out in paragraph/Rule 8.03A of the Listing Requirements.

3. 1-month Automatic Extension for Submission of Financial Statements

An automatic 1-month extension is now granted to listed issuers for issuance of:

1. quarterly and annual reports for the Main and ACE Markets; or

2. semi-annual and annual audited financial statements for the LEAP Market,

that are due on 31 March 2020 and 30 April 2020.

4. Greater Flexibility for Brokers to Manage Margin Accounts

Flexibility and discretion is given to brokers as the requirement for brokers to automatically liquidate their client’s margin account if the equity in the margin account falls below 130% of the outstanding balance is now removed.

5. Expanding the List of Collaterals for Purposes of Margin Financing

Collaterals, such as bonds, collective investment schemes, unit trusts, gold and immovable properties for purposes of maintaining clients’ margin account can now be accepted by brokers provided if such collaterals are valued as per the broker’s credit policy.

6. Shortened Counter Service Hours

All market participants providing counter services to customers are encouraged to limit their operational hours from 10.00 am to 3.00 pm during the Movement Control Order period.

7. Extension of time for submission of CDS transaction forms

All authorised depository agents are now given an extension of time for submission of specified physical CDS transaction forms to Bursa Malaysia Depository Sdn Bhd.

In addition to the measures above, the Securities Commission Malaysia and Bursa have on separate occasions jointly issued statements in relation to:

1. Intraday and regulated short-selling being temporarily suspended until 30 April 2020.

2. Granting flexibility on the timing of annual general meetings and the issuance of periodic reports of the listed issuers.

Further details of the relief measures can be found on Bursa Malaysia’s Website.