These transitional arrangements have been formulated after consultation with various industry and professional bodies.
A) Where approval of BNM has been granted on or before 30 June 2000
If an application for a PDS issue has been made to Bank Negara Malaysia (BNM) and the approval of BNM has been granted on or before 30 June 2000 AND provided that the issue of the PDS takes place within a period of six months from the date of BNM's approval:
- Issuers need not comply with the SC's new Guidelines on Private Debt Securities (PDS Guidelines);
- Issuers need not comply with the SC's Guidelines on Minimum Contents of Trust Deeds. However, issuers must nonetheless comply with Companies Act 1965 requirements relating to trust deeds and/or the relevant stock exchanges' listing requirements; and
- Issuers need not comply with the SC's new Guidelines on Prospectus for Debentures. However, issuers must nonetheless comply with the requirements of the Companies Act 1965 relating to prospectuses and/or the relevant stock exchanges' listing requirements.
Issuers who fall within paragraph (b) or (c) must nonetheless obtain a letter of approval from SC to avail themselves of the relief so granted.
In the above mentioned case, the SC is committed to grant the approval within 14 working days from the date of application for relief by the issuer.
B) Where full submission has been made to BNM on or before 30 June 2000 but BNM's approval not granted on or before 30 June 2000
If a full submission for a PDS issue has been made to BNM on or before 30 June 2000 but approval of BNM has not been granted on or before 30 June 2000, AND provided that the issue of PDS takes place within a period of six months from the date of SC's approval:
- Issuers must comply with the SC's new PDS Guidelines;
- Issuers need not comply with the SC's Guidelines on Minimum Contents of Trust Deeds. However, issuers must continue to comply with the Companies Act 1965 requirements relating to trust deeds and/or the relevant exchanges' listing requirements; and
- Issuers need not comply with the SC's new Guidelines on Prospectus for Debentures. However, issuers must comply with the requirements of the Companies Act 1965 relating to prospectuses and/or the relevant stock exchanges' listing requirements.
Issuers who fall within paragraph (b) or (c) must nonetheless obtain a letter of approval from the SC to avail themselves of the relief so granted.
In the above mentioned case, the SC is committed to grant the approval within 14 working days from the date of compliance with the SC's new PDS Guidelines.
C) Applications made after 30 June 2000
If an application is submitted after 30 June 2000, issuers must comply with:
- the SC's new PDS Guidelines;
- the SC's Guidelines on Minimum Contents Requirements forTrust Deeds;
- the SC's Guidelines on Prospectus for Debentures; and
- all requirements of the Securities Commission Act 1993.
The SC expects to issue its new guidelines on Private Debt Securities (PDS Guidelines), Guidelines on the Contents of Prospectuses for Debentures and Guidelines on the Minimum Contents Requirements for Trust Deeds before the end of June 2000.
In as far as the transitional arrangements for equity and equity-linked issues and the registration of prospectuses in relation thereto, the SC had notified the relevant stock exchanges, advisers, industry and professional bodies and issuing houses of the transitional arrangements in order to ensure a smooth transition and minimise undue burden on issuers.
