SIDC booklet on disclosure-based regulation for company directors now available

Kuala Lumpur, 2 December 1999

The Securities Industry Development Centre (SIDC) of the Securities Commission (SC) released its booklet on disclosure-based regulation (DBR) for company directors today.

Entitled "Disclosure-based regulation: What Directors Need to Know", the 15-page booklet provides a basic understanding of DBR for the Malaysian capital market.

In essence, the booklet focuses on the three important tenets of DBR: Disclosure, Due Diligence and Corporate Governance. It explains how the inculcation of high standards of the three tenets will increase the efficiency, transparency and stability of the market.

The publication of the booklet is timely in view that the SC is about to enter the second phase of implementation of the DBR programme. The SC embarked on a three-phased shift towards DBR in 1996 and expects to achieve a full DBR framework by the year 2001.

Under the present system of merit based regulations, the SC assesses the investment merit and pricing of an offering. Under DBR, the onus of assessing the merit of securities rests with the investors while the SC regulates the disclosure of material information. Under the new regulatory regime, directors of public companies are therefore expected to discharge their duties with greater integrity and due care, bearing in mind the criminal liabilities for persons convicted of violating securities laws.

For further information on the booklet please contact Mohd. Zamry Yunus of the SC's Information Shoppe at telephone number: 603-6548667 or facsimile number: 603-6515131. Members of the public may also view the booklet on the SC website at

In addition to this DBR booklet, other publications targeted at enhancing the professional standards of company directors are also available at the SC's Information Shoppe. These publications include the "Due Diligence Practices" booklet and the "Finance Committee Report on Corporate Governance".

The production of such publications is part of an on-going educational programme for company directors carried out by the SC as well as organisations such as the Malaysian Institute of Corporate Governance (MICG) and the Research Institute of Investment Analysts Malaysia (RIIAM).


Issued on behalf of the Securities Commission. Members of the press requiring assistance may contact the Corporate Affairs Department at tel no. 03-6548513 (Ann Teoh) / 03-6548625 (Soh Beng Choo) or fax no.: 03-6515078.

Background information:

The Securities Industry Development Centre (SIDC) is the education arm of the Securities Commission. It is responsible for facilitating education and research in the development of the capital market in Malaysia through training and dissemination of findings of non-proprietary research. It is also responsible for the development of the SC's resource centre which when fully established will be the premier capital market resource centre for the region.

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.

More information about the SC is available on its homepage at
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