Following the amendments last month, the present provisions governing bonus issues and ESOS proposals contained in the SC’s Policies and Guidelines on Issue/Offer of Securities (Issues Guidelines) have been disapplied. The disapplication is effected through Guidance Notes 8B and 9A, which are issued pursuant to Chapter 8 (Equity Offerings) and Chapter 9 (Warrants, Options, Convertibles and Preference Shares) of the Issues Guidelines respectively.

Under the Listing Requirements of MSEB and the Listing Requirements of MSEB for the MESDAQ Market, property valuation reports must be prepared in compliance with the SC’s Guidelines on Asset Valuation in cases where bonus issues are undertaken from the capitalisation of reserves arising from revaluation of land and buildings. In relation to the valuation report requirement for bonus issues, Guidance Note 3 under the SC’s Guidelines on Asset Valuation has been issued to clarify the requirements relating to valuation reports prepared for such purposes.

Guidance Notes 8B and 9A under the Issues Guidelines and Guidance Note 3 under the Guidelines on Asset Valuation are available here.