31 October 2006

SC introduces new structured warrants products-More global investment opportunities for investors

Investors in Malaysia now have more opportunities to tap on global investments with the introduction of new structured warrant products. This is made possible with the latest revision by the Securities Commission (SC) to its Guidelines for the Issue of Structured Warrants (Guidelines).

The revision to the Guidelines will facilitate the issuance of structured warrant products such as call warrants, basket call warrants and bull equity-linked structures on foreign underlying shares.

These new structured warrant products will allow investors to gain greater exposure to foreign markets without having to open an overseas trading account or foreign currency account. They can invest not only in structured warrants issued on companies listed on Bursa Malaysia, but also on foreign listed shares and indices.

The introduction of these new structured warrant products is part of the SC’s continuous efforts to further improve the value proposition of the Malaysian capital market. The SC had last year allowed investors to invest in foreign securities listed on recognised stock exchanges and recently in June 2006 facilitated the listing of foreign corporations on Bursa Malaysia.

This meets the aspirations of the Ninth Malaysia Plan to promote a vibrant financial services sector through the introduction of new products and is also aligned with the aim of the Capital Market Masterplan to facilitate the introduction of a broad range of capital market products to cater to various investment and risk-return profiles.

The revised Guidelines is available here