Press Statement - Danaharta Appoints Special Administrators Over Four Other Stockbroking Companies

Kuala Lumpur, 30 April 1999

Danaharta has appointed Special Administrators over four other stockbroking companies pursuant to efforts to restructure and regularise the financial positions of troubled brokers within the Securities Commission (SC)-Danaharta broker scheme. The stockbroking companies are MGI Securities Sdn Bhd, Premier Capital Securities Sdn Bhd, Jupiter Securities Sdn Bhd and Innosabah Securities Sdn Bhd.

The SC regards this development as part of continuing efforts for the effective and timely resolution of the problems of troubled brokers. This development is in keeping with the purpose of the SC-Danaharta broker scheme announced by the SC on 3 November 1998, which is to provide an industry-wide solution to the problems of troubled stockbroking companies, and to ensure an overall strengthening and consolidation of the industry.

Danaharta has made the appointments of the Special Administrators under its statutory powers with approval from the SC pursuant to the requirement of section 27 of the Pengurusan Danaharta Nasional Berhad Act 1998.

The Special Administrators will assume control and management of the assets and affairs of the stockbroking companies, and will prepare workout proposals to maximise the value of each company. As with the other stockbroking companies under Special Administration, the workout proposals are expected to be submitted to the SC for approval.

To date, the SC has approved the workout proposal prepared by the Special Administrators of Capitalcorp Securities Sdn Bhd ('Capitalcorp'), which was completed within two months from the date of the appointment of the Special Administrator. The workout proposal for Capitalcorp was presented by the Special Administrators and approved by secured creditors on 16 March 1999.

With the approval of the Capitalcorp workout, the SC is confident that the other six stockbroking companies under Special Administration will also result in a timely resolution. Thus far, the SC is satisfied with the progress of the broker scheme that has been in place with Danaharta.

As the licensing authority for stockbroking companies pursuant to the Securities Industry Act 1983, the SC will closely review the workout proposals to ensure that the objectives of the scheme are met, allowing trade restrictions to be lifted as soon as possible.

The appointment of the Special Administrators will have no impact on the trading operations of the brokers, which will continue as usual in accordance with any trading restrictions imposed previously. The Special Administrators, assisted by representatives from the Kuala Lumpur Stock Exchange (KLSE), will be on hand to address any queries which may arise.

The SC and KLSE will take appropriate action to ensure that investor protection concerns are addressed and systemic stability is not compromised. The special task force headed by the SC and including representatives from KLSE and Danaharta will continue to review the implementation of the broker scheme.


Issued on behalf of the Securities Commission. For assistance please contact the Corporate Affairs Department at tel no. 03-6548513 (Ann Teoh) / 03-6548107 (Ida Mariana Azmi) or fax no.: 03-6515078.

Background information:
The Securities Commission (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Securities Industry Act 1983 and Futures Industry Act 1993.

For more information on the SC, visit the SC homepage at
about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

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