SECTION

TITLES

CMSA SECTION

PART I

PRELIMINARY

1

Short title, commencement and application.

2

Interpretation.

2

3

Associated person.

3

4

Interest in securities.

4

PART II

CAPITAL ISSUES COMMITTEE

5

[Repealed].

6

[Repealed].

PART III

STOCK EXCHANGES AND CLEARING HOUSES

7

Establishment of stock markets.

7

8

Power of Minister to approve a stock exchange

8

8A

Recognised clearing house.

38

8B

Withdrawal of recognition of clearing house.

39

8C

Effect of withdrawal of recognition of clearing house

40

8D

Appointment of directors of stock exchange and exchange holding company.

10

9

Commission to approve amendment to rules of stock exchange.

9

9A

Commission to approve amendment to rules of recognised clearing house.

9

9B

Duties of stock exchange.

11

9C

Closure stock exchange in emergency.

27

9D

Withdrawal of approval of stock exchange.

12

9E

Effect of withdrawal of approval of stock exchange.

13

10

Exchange holding company, stock exchange and recognised clearing house to provide assistance to Commission.

29

11

Powers concerning compliance with the provisions of this Act and rules of the stock exchange, etc.

354

11A

Power of Commission to prohibit trading in particular securities.

28

11B

Suspension order relating to stock exchange, recognised clearing house or central depository.

30

11C

Exchange holding company.

14

11D

Power of Minister to approve an exchange holding company.

15

11E

Annual Regulatory Report on compliance with ongoing requirements.

16

11F

Special report by exchange holding company about compliance with ongoing requirements.

17

11G

Withdrawal of approval of an exchange holding company.

18

11H

Effect of withdrawal of approval of exchange holding company.

19

11I

Listing of exchange holding company on stock exchange.

20

11J

Duties of an exchange holding company.

21

11K

Risk Management Committee of exchange holding company.

22

11L

Power to issue directions

26

11M

Restriction on exchange holding company from reducing its shareholding.

23

11N

Disposal and acquisition of assets, etc.

24

11O

Control in shareholding of exchange holding company.

25

11P

Power of Commission upon contravention of sections 11M, 11N and 11O.

31

PART IV

LICENCES

12

Dealer’s licence.

58

13

Dealer’s representative’s licence.

59

14

Investment adviser’s licence.

58

15

Investment representative’s licence.

59

15A

Fund manager’s licence.

58

15B

Fund manager’s representative’s licence.

59

15C

Contravention of section 12,13,14,15,15A, or 15B.

16

Application for licence or renewal.

60

16(1)

 

16(1A)

 

16(2)

 

16(3)

 

63

17

Grounds for refusal to grant or renew licence.

64,65

17A

Licensed person to notify Commission of disqualifying event.

74

18

Grant or renewal of licences.

61

19

Commission’s power to vary licences in certain circumstances.

69

20

Power of Commission to enquire into securities transactions.

66

20A

Minimum financial requirements.

67

21

Power of Commission to impose conditions or restrictions on licences.

62

22

False statements.

71

23

Deposit to be lodged in respect of dealer’s or fund manager’s licence.

70

24

Period of licence.

68

25

Notification of change in particulars.

78

26

Register of licence holders.

77,79

27

Revocation and suspension of licence.

72,73

28

Appeal.

80

28A

Surrender of licence.

81

28B

Powers concerning compliance with conditions of licence, etc. by licensed persons.

356

PART V

RECORDS

29

Application of this Part.

82

30

Register of securities.

83

31

Notice of particulars to Commission.

84

32

Defence to prosecution.

85

33

Production of register.

86

34

Particulars of financial journalists.

87

35

Commission may supply copy of the extract of a register.

88

PART VI

CONDUCT OF SECURITIES BUSINESS

36

[Repealed by Act A661:s.13].

37

Certain representation prohibited.

89

38

Issue of contract notes.

90

39

Certain persons to disclose certain interests in securities.

91

40

Dealings as principal.

97

40A

Recommendations by adviser.

92

40B

Duty to furnish Commission with such returns and information as Commission requires.

95

40C

Additional obligations on licensed persons.

96

41

Shortselling.

98

PART VII

ACCOUNTS AND AUDIT

42

Application of this Division.

109

43

Accounts to be kept by dealers.

108

44

Certain monies received by dealers to be paid into a trust account.

111

44A

Property other than monies received by dealers.

112

45

Purposes for which monies may be withdrawn from trust account.

113

45A

Dealer to supply copies of entries in books.

114

46

Monies in trust accounts not available for payment of debts, etc.

113

47

Claims and liens not affected.

115

47A

Application of Division.

120

47B

Accounts to be kept by fund manager.

47C

Operation of trust account.

122

47D

Client’s monies.

123

47E

Right to copies of book entries, inspection of contract notes, etc.

124

47F

Commission’s power to transfer client’s property and monies to a trust company, etc. under certain circumstances.

125

48

Appointment of auditor.

126

48A

Associates not to be appointed as auditors.

126

49

Relevant person to lodge auditor’s report.

127

50

Duties of auditor.

128

51

Duty of relevant person or its directors or officer to furnish information.

129

52

Power of Commission to appoint independent auditor, etc.

130

53

Power of Commission to appoint an independent auditor, etc., upon application of client.

131

54

Independent auditor, etc., to report to Commission.

132

55

Powers of independent auditor, etc.

133

56

Prohibition against communication of certain matters by independent auditors, etc., and employees.

134

57

Books, accounts and records to be produced upon demand.

135

58

Penalty for destroying, concealing or altering records or sending records or other property out of Malaysia.

136

59

Rights of board of stock exchange to impose obligations on participating organization.

137

PART VIII

COMPENSATION FUND

60

Interpretation.

140

61

Establishment of compensation fund.

141

62

Monies constituting compensation fund.

142

63

Funds to be kept in separate account.

143

64

Payments out of compensation fund.

144

65

Accounts of compensation fund.

145

66

Requirement of relevant stock exchange to pay portion of net income into compensation fund.

146

67

Contributions to compensation fund.

147

68

Provision where compensation fund exceeds fifty million ringgit.

148

69

Levy in addition to annual contribution.

149

70

Power of stock exchange to make advances to compensation fund.

150

71

Investment of monies in compensation fund.

151

72

Application of compensation fund.

152

73

[Repealed]

74

[Repealed].

75

[Repealed].

76

[Repealed].

77

[Repealed].

78

Power of relevant stock exchange to require production of securities.

153,168

79

Subrogation of relevant stock exchange to rights and remedies of claimant upon payment from compensation fund.

154

80

Payment of claims only from compensation fund.

155

81

[Repealed].

82

Power of relevant stock exchange to enter into contract of insurance.

156

83

Application of insurance monies.

157

83A

Monies in compensation fund where relevant stock exchange wound up.

158

83B

Regulations in respect of compensation fund.

141(3)

PART VIIIA

CAPITAL MARKET DEVELOPMENT FUND

83C

Establishment of Capital Market Development Fund

332

83D

Assets constituting Fund.

333

83E

Objects of the Fund, etc.

334

83F

Membership of the Board.

335

83G

Tenure of office.

336

83H

Resignation and revocation of appointment.

337

83I

Vacation of office.

338

83J

Quorum and procedures of meetings.

339

83K

Disclosure of interest.

340

83L

Conservation of the Fund.

341

83M

Financial year.

342

83N

Accounts and audit.

343

83O

Power of Minister in relation to the Board.

344

83P

Dissolution of the Fund.

345

83Q

Power to make regulations.

346

PART IX

TRADING IN SECURITIES

Division 1

Prohibited Conduct

84

False trading and market rigging transactions.

175

85

Stock market manipulations.

176

86

False or misleading statements, etc.

177

87

Fraudulently inducing persons to deal in securities.

178

87A

Use of manipulative and deceptive devices.

179

87B

Person or transaction to whom or which sections 84,85,86,87 and 87A do not apply.

180

88

Dissemination of information about illegal transactions.

181

88A

Civil liability for contravention of sections 84,85,86,87,87A and 88.

199,210

88B

Penalty for offence under Division 1.

182

88C

Acts and omission within and outside Malaysia relating to prohibited conduct under Division 1.

174

Division 2

Insider Trading

89

Information.

183

89A

Information generally available.

184

89B

Material effect on price or value of securities.

185

89C

Trading in securities.

186

89D

Reference to “procure”.

187

89E

Prohibited conduct of person in possession of inside information.

188

89F

Proof of contravention of section 89E.

189

89G

Secrecy arrangements by corporation.

190

89H

Secrecy agreements by partnership.

191

89I

Underwriting and sub-underwriting.

192

89J

Non-application of section 89E to transactions carried out under schemes of arrangement, etc. under any written law.

193

89K

Exception for corporation with knowledge of its intention.

194

89L

Exception of knowledge of individual’s own intentions or activities.

195

89M

Unsolicited transaction by a broker.

196

89N

Exception for redemption of units of a unit trust scheme under buy-back covenant.

197

89O

Parity of information defence.

198

89P

Acts and omission within and outside Malaysia relating to insider trading.

Division 3

Liability for Unlawful Activity

90

Civil remedies.

200,211

90A

Recovery of loss or damages.

201

91

[Deleted]

92

Dealer to give priority to client’s order.

93

93

Dealings by employees of holders of licences.

94

PART X

ENFORCEMENT AND INVESTIGATION

Division 1

General

94

Interpretation.

347

94A

Inspection of books and records of licencee and others.

95

Power of Commission to require production of books.

348

95A

Power to specify form and manner of information, returns or documents and period for submission.

350

96

Offences.

349

97

Privileges.

351

97(1)

 

97(2)

 

97(3)

 

347

98

Disclosure to Commission.

352

99

Investigation of certain matters.

99A

Disclosure of information relating to dealing in securities.

353

99B

Duty of chief executive and directors of listed corporation to disclose interests in securities.

317

99C

Disqualification of chief executive or director of listed companies.

318

99D

Submission of information.

319

99E

Duties of auditor of listed corporations.

320

99F

Protection for persons against retaliation for reporting to authorities in specific circumstances.

321

100

Power of court to make certain orders.

360

100A

Application for winding up.

361

PART XA

MODIFICATIONS TO THE LAW OF INSOLVENCY AND MISCELLANEOUS PROVISIONS RELATING TO THE OPERATIONS AND PROCEDURES OF THE RECOGNIZED CLEARING HOUSE

101

Interpretation.

41

102

Default rules.

42

103

Proceedings of recognized clearing house to take precedence over law of insolvency.

43

104

Supplementary provisions as to default proceedings.

44

105

Duty to report on completion of default proceedings.

45

106

Net sum payable on completion of default proceedings.

46

107

Disclaimer of property, rescission of contracts, etc.

47

108

Adjustment to prior transactions.

48

109

Right of relevant office-holder to recover certain amounts arising from certain transactions.

49

110

Law of insolvency in other jurisdictions.

50

111

Participant to be a party to certain transactions as principal.

51

112

Securities delivered to a recognized clearing house.

52

113

Securities transfers in settlement.

53

114

Purchase and sale of securities.

54

115

Immunity.

55

116

Preservation of rights, etc.

56

117

Exemption from regulations on reporting of substantial shareholding and Division 3A of the Companies Act 1965.

57

Division 2

 

118

[Deleted]

119.

[Deleted]

PART XI

GENERAL

120

Prohibition of use of certain titles

362

121

Copy of an entry in the dealer’s or fund manager’s record as prima facie evidence of such entry

363

121A

Decision of Minister to be final

366

122

Offences by bodies of persons and by employees and agents

367

122A

Falsification of records by directors, employees and agents

368

122B

False reports to Commission, stock exchange or recognised clearing house

369

122C

Attempts, abetments and conspiracies

370

122D

Destruction, concealment, mutilation and alteration of records

371

123

General penalty

372

124

Compounding of offences

373

125

Convicted persons liable to pay compensation

374

126

Conduct of prosecution

375

126A

Indemnity

376

126B

[Deleted]

126C

Commission may be represented by any officer in civil proceedings

See 154 SCA

127

Regulations

378

128

Provisions of Act not applicable to Pasaran Saham Bumiputra

PART XII

REPEAL AND TRANSITIONAL PROVISIONS

129

Repeal

130

Saving

131

Continuance of powers, rights, liabilities and duties of the Registrar

132

Continuance of criminal and civil proceedings in relation to the Registrar

133

Continuance of other rights, liabilities, etc., under repealed Act

134

Prevention of anomalies