SC issues show cause letters to two stockbroking firms

Kuala Lumpur, 4 May 1998

The Securities Commission (SC) has today issued show cause letters to Omega Securities Sdn Bhd (Omega Securities) and Alor Setar Securities Sdn Bhd (Alor Setar Securities), pursuant to Section 27 of the Securities Industry Act 1983, on why their stockbroking licences should not be suspended or revoked.

The stockbroking firms have been given two weeks to respond to the SC's show cause letters. Alor Setar Securities is allowed to continue to conduct its business under the trading restrictions imposed by the Kuala Lumpur Stock Exchange (KLSE). Omega Securities ceased all trading activities with effect from today. The SC had decided to not grant written consent to Omega Securities to carry on its licensed business activity, as required under Section 20A of the Securities Industry Act, 1983 (SIA).

On 15 April 1998, KLSE, upon a directive from the SC, had informed the two stockbroking firms that an agreement in principle must be reached for a restructuring exercise in the form of a merger or acquisition within a two-week period, ending 30 April 1998. None of the companies had submitted such an agreement in principle on expiry date.

Omega Securities and Alor Setar Securities were put under trading restrictions because they were not able to fulfil prudential capital standards and business conduct standards of the securities laws and KLSE Rules.

In all decision made by the SC, investor protection and management of systemic risk are given the utmost priority. The SC has also instructed KLSE to be on hand to address any concerns clients of the abovementioned firms may have.


Issued on behalf of the Securities Commission. For assistance please contact the Corporate Affairs Department, Tel No 03-259 7164 (Karen de Cruz) or fax at 03-253 6184.
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.

General Line: +603-6204 8000
General Email: [email protected]
© Copyright Securities Commission Malaysia.  Contact Us   |    Disclaimer   |   The site is best viewed using Microsoft Edge and Google Chrome with minimum resolution of 1280x1024
Generic Popup