About the SC - ABOUT | Securities Commission Malaysia

About the SC

The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

Our mission is "to promote and maintain fair, efficient, secure and transparent securities and derivatives markets; and facilitate the orderly development of an innovative and competitive capital market".

The SC has direct responsibility for rule-making, enforcing regulations pertaining to the capital market, ensuring sustainable market growth and development, supervising capital market activities and market institutions including the exchanges, clearing houses and registered market operators, and regulating all entities and persons licensed under the Capital Markets and Services Act 2007. Based on the SCA, the SC reports to the Minister of Finance and our accounts are tabled in Parliament annually.

Our areas of responsibilities include:

Developing the overall capital market and its market segments such as the equity market, bond and sukuk market, Islamic capital market, fund management, derivatives and other market-based platforms and services;
Facilitating innovation and digital services through the capital market;
Creating avenues for a sustainable financing ecosystem;
Ensuring proper conduct of all market participants through our supervisory, surveillance and enforcement work;
Championing good corporate governance practices; and
Facilitating greater cross-border regulatory co-operation and thought leadership.

Underpinning all our work is a firm focus on investors. Our core mandates to regulate and ensure market growth are always done with the objective of protecting the investors, including initiatives to raise their levels of financial and investment literacy.

What is the scope of the SC’s regulatory functions?
The SC’s many regulatory functions include:
Registering authority for prospectuses of corporations other than unlisted recreational clubs;
Approving authority for corporate bond issues;
Regulating all matters relating to securities and futures contracts;
Regulating the take-over and mergers of companies;
Regulating all matters relating to unit trust schemes;
Licensing and supervising all licensed persons;
Supervising exchanges, clearing houses and central depositories;
Encouraging self-regulation; and
Ensuring proper conduct of market institutions and licensed persons.
What are the acts that fall under the purview of the SC?
The SC administers the following acts:
Securities Commission Act 1993;
Capital Markets and Services Act 2007; and
Securities Industry (Central Depositories) Act 1991.
Where can I obtain more information about the SC?
Among others, the SC website provides information on latest and past press releases, publications, past speeches as well as guidelines and regulations to the securities industry. There are also special sections on the Islamic Capital Market and International Co-operation. Members of the public may provide comments or forward an enquiry on SC related matters.
Functions of the SC as stated in the Securities Commission Act
To advise the Finance Minister on all matters relating to the capital market
To regulate all matters relating to the capital market
To ensure that the provisions of the securities laws are complied with
To regulate the take-overs and mergers of companies
To promote and regulate all matters relating to fund management, including unit trust and private retirement schemes
To consider and make recommendations for the reform of the securities laws
To encourage and promote the development of the capital market in Malaysia including research and training
To encourage and promote self-regulation by professional associations or market institutions in the capital market
To license, register, authorise, approve and supervise all persons engaging in regulated activities or providing capital market services as may be provided for under any securities law
To promote and maintain the integrity of all licensed persons, registered persons, approved persons and participants in the capital market
To register or recognise all auditors of public interest entities or schedule funds, and to exercise oversight over any person who prepares a report in relation to financial information of public interest entities or schedule funds, in relation to capital market activities
To promote confidence in the quality and reliability of audited financial statements in Malaysia, and to promote and develop an effective and robust audit oversight framework in Malaysia
To take all reasonable measures to monitor, mitigate and manage systemic risks arising from the capital market
To promote and regulate corporate governance and approved accounting standards of listed corporations; and to set and approve standards for professional qualification for the capital market