The Approval Process Of Initial Public Offerings (IPOs) Of Real Estate Investment Trusts (REITs) In Malaysia
All REITs seeking listing on Bursa Malaysia will require SC’s approval, under section 212 of the Capital Markets and Services Act 2007. The Managed Investment Schemes Department (MIS), Property Valuation Department (PVAL) and Equity Compliance Unit (ECU) of the Corporate Finance and Investments Division will evaluate all applications for the establishment and listing of REITs. REIT management companies are required to be licensed, and an application for the licence must be made to the Authorization and Licensing Department. The SC will complete its assessment of the REIT within three months from receipt of a full and complete application. In evaluating all applications for the establishment of REITs, MIS will assess the real estates to be acquired as well as the appointments of the management company and trustee.

At this stage, MIS reviews the deed to ensure the minimum covenants stipulated in the Guidelines on Real Estate Investment Trusts (REITs Guidelines) are incorporated. MIS also reviews the prospectus to check that the contents are in accordance to the Prospectus Guidelines for Collective Investment Schemes and that the disclosures are adequate to assist investors in making informed investment decisions. Prior to the listing of the REIT, the deed and prospectus must be registered with SC.

PVAL reviews the valuation reports of the real estates to ensure compliance with the requirements of the Asset Valuation Guidelines. It also reviews the adequacy of disclosures in the valuation certificates. ECU reviews the unit holding structure of the REIT to ensure its compliance with the Bumiputera equity requirement.

There are also discussions between the principal advisers and the SC, beginning right from the pre-submission consultation stage. Throughout the assessment of a REIT application, there is a vigorous internal challenge process in place to ensure thoroughness, consistency, transparency and accountability within the process.


see The Approval Process Of IPOs Of REIT In Malaysia.pdf

Client Charter

Type of Application Time (weeks)

New CMSL

6

New CMSRL

2


Who are licensed by the SC

The SC issues 2 types of licences namely CMSL and CMSRL for the following regulated activities:
  • Dealing in securities
  • Dealing in derivatives
  • Fund management
  • Dealing in private retirement scheme*
  • Advising on corporate finance
  • Investment advice
  • Financial planning


*Agents and employees of a holder of a CMSL for dealing in private retirement scheme will not be required to hold a CMSRL. However, they must be registered with the Federation of Investment Managers Malaysia (FIMM) and comply with any provision or guidelines issued by the SC.

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