KUALA LUMPUR (April 16): Securities Commission Malaysia (SC) chairman Datuk Syed Zaid Albar said today Bursa Malaysia will provide Main Market listed companies temporary relief from the Practice Note 17 (PN17) classification to give them more time to regularise their financial positions as they contend with challenges due to the Covid-19 pandemic.

Syed Zaid said Bursa will provide similar temporary relief from the Guidance Note 3 classification to companies listed on the ACE Market.

"These measures will allow companies more time to regularise their financial positions. The period for this PN17 relaxation will be effective from April 17 this year (2020) until June 30, 2021,” he said during a virtual media briefing in conjunction with the release of the SC’s 2019 annual report today. 

According to the SC, the PN17 temporary relief for Main Market-listed companies is based on three criteria. These include requirements that the shareholders’ equity of a company on a consolidated basis is 25% or less of its share capital and that auditors have highlighted a material uncertainty on the firm as a going concern. The criteria include a company’s inability to provide a solvency declaration to the exchange, according to the SC.

Noting that extraordinary times call for extraordinary responses, Syed Zaid said “this is not business as usual” and the SC is deploying a wide range of regulatory tools to support the market and its participants. 

“While the SC is doing what it can to support the businesses, we remain steadfast in ensuring investor interest is protected during this challenging time. We continue to raise investor awareness on scams, as scammers tend to target people during times of uncertainty. 

“The SC will take a targeted approach to protect vulnerable investors and minority shareholders. I would also like to remind our intermediaries to remain vigilant and for PLCs (public limited companies) to remember their obligations to shareholders and to make timely disclosures,” he said.

The SC also assured investors that the Malaysian capital market remains fundamentally strong and is functioning in an orderly manner, supported by deep domestic liquidity and complemented by the government’s stimulus packages.

As the financial system adjusts to the impact of Covid-19, Syed Zaid said the SC will continue to monitor the evolving situation in global and domestic markets, calibrate its responses and update the public accordingly.

https://www.theedgemarkets.com/article/sc-chairman-bursa-provide-listed-main-market-firms-temporary-relief-pn17-classification