Cessation Of Business At Halim Securities For Defaulting To Scans

SC rejects proposed corporate restructuring

Kuala Lumpur, 5 June 1998

The Securities Commission (SC) has decided to withdraw its written consent to Halim Securities Sdn Bhd ("Halim Securities") to carry on its licensed business activity, pursuant to Section 20A of the Securities Industry Act, 1983 (SIA), following default proceedings taken by the Securities Clearing Automated Network Services ("SCANS") and the SC's rejection of Halim Securities' proposed corporate restructuring plan.

Based on a report from the Kuala Lumpur Stock Exchange ("KLSE") and SCANS to the SC, Halim Securities had not only defaulted on its payment of RM9.67 million to SCANS but has also failed to meet the minimum liquid funds (MLF) requirement under Rule 17A of the Exchange's Rules Relating to Member Companies. The SC's rejection of the corporate restructuring plan is due to numerous concerns including the inadequacy of the proposed capital injection.

From Monday 8 June 1998, Halim Securities will, therefore, have to desist from dealing in securities until such time as, in the context of Section 20A of the SIA, it is able to fulfill KLSE's MLF requirements. In addition, Halim Securities will also have to settle the amount due to SCANS.

On 23 March, the KLSE in consultation with the SC, had directed Halim Securities to undertake a corporate restructuring in the form of either a merger or an acquisition. The stockbroking company was placed under trading restrictions by KLSE on 4 February 1998.

The decision to take these actions come after both the SC and KLSE had repeatedly given Halim Securities the opportunity to regularise its financial position in compliance with KLSE Rules and securities laws. In addition, SCANS had given several notices and extension of time to Halim Securities to settle the amount due to SCANS.

KLSE, in a separate announcement today, will detail arrangements to handle investor and other inquiries arising from the cessation of its licensed business activity at Halim Securities.


Issued on behalf of the Securities Commission. For assistance, please contact Corporate Affairs Department Tel No. 03-250 7510 or 03-259 7550 (Nafizah Omar) or Fax No 253 6184.
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