With the repeal of the NBMC Negative List, the SC no longer imposes restrictions on the utilisation of proceeds derived from bond issues, other than those relating to foreign exchange requirements in Bank Negara Malaysia's (BNM) Exchange Control Guidelines on Private Debt Securities for Lead Arrangers.

The previous restrictions on utilisation of proceeds derived from bond issues, outlined in the NBMC Negative List, were in relation to bridging finance for selected property development projects. These restrictions mirrored the lending restrictions imposed by BNM on banks in relation to bridging finance for selected property development projects.

The NBMC Negative List is repealed in tandem with BNM's recent relaxation of the banks' bridging finance lending restrictions. With the repeal of the NBMC Negative List, regulatory parity will be achieved for fund-raising exercises by the private sector. From a broader perspective, this latest step is consistent with the overall government objective to progressively deregulate and liberalise the market and economy.

The lifting of restrictions on utilisation of proceeds from bond issues will encourage more issuance of bonds to finance various property developments projects. As with all types of investments, the SC reminds investors to make informed investment decisions by analysing the relevant risks and available information.