Kuala Lumpur, 14 February 2018
Securities Commission Malaysia and Bursa Malaysia to implement new measures to boost market vibrancy
Kuala Lumpur, 14 February 2018 – The Securities Commission Malaysia (“SC”) and Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) today outlined the operational details of various new measures to further enhance the vibrancy and liquidity of the equity market.
These measures were announced on 6 February 2018 by Prime Minister Yang Amat Berhormat Dato’ Sri Mohd Najib bin Tun Abdul Razak at the World Capital Markets Symposium 2018, hosted by the Securities Commission Malaysia.
i) Stamp duty waiver on shares of mid and small cap companies for three (3) years from 1 March 2018 to 28 February 202
- For stamp duty exemption in 2018, eligible mid and small cap companies are those with market capitalisation between RM200 million and RM2 billion as at 31 December 2017
- The list of companies eligible for the stamp duty exemption will be reviewed annually and determined as at 31 December of each year. It will be published at www.bursamalaysia.com
ii) Waiver on trading and clearing fees for six (6) months for new individual investors
- First-time individual investors who open a CDS account with a Participating Organisation (PO) and undertake trading between 1 March 2018 and 31 August 2018 will be entitled to this waiver
iii) Liberalisation of margin financing rules
- The current margin financing limit of 200% of the effective PO’s shareholders’ funds will be removed
iv) Intra Day short selling (IDSS) allowed for all investors
- The SC has approved the framework for IDSS and the Exchange is currently putting in place the necessary Rules changes and system enhancements. The Exchange is targeting to launch the framework in the second quarter 2018.
Further details on the introduction of trading specialist and the implementation of the market corridor between Malaysia and Singapore will be released in due course.
Measures (i) to (iii) mentioned above, together with the introduction of volume based incentive will be effective on 1 March 2018.
SECURITIES COMMISSION MALAYSIA
BURSA MALAYSIA BHD