KUALA LUMPUR: The Securities Commission (SC) has introduced various regulatory functions to uphold a fair, efficient, secure and transparent capital market.

This includes rulemaking, gatekeeping, surveillance, supervision, complaints handling and enforcement, the SC said in its Annual Report 2023.

Despite the global financial markets' improvement attributed to lower energy prices and a moderated pace of monetary tightening, the SC said the capital market remains sensitive to potential economic challenges such as persistent core inflation and geopolitical tensions. 

In light of this, the SC maintains a vigilant stance, identifying potential risks that could threaten the systemic stability of Malaysia's capital market

In 2023, there was a notable increase in equity fundraisings, with a higher number of equity applications submitted to the SC compared to the previous year. 

Out of the 22 equity applications received, nine were for initial public offerings (IPOs), two related to proposed acquisitions leading to significant business direction changes, and 11 for transfer of listings to the Main Market of Bursa Malaysia Bhd. 

Additionally, seven applications will be carried over from 2022.

Of these applications, 18 were considered, while two were withdrawn, and nine remained under review at year-end. On average, five rounds of queries were raised per equity application, with 99 per cent addressed within the stipulated time frame, SC said in its report.

The SC proactively conducts surveillance across various market segments to detect misconduct and vulnerabilities. 

In 2023, this included 1,405 assessments on trading anomalies and in-depth analyses of market abuse cases, such as insider trading and market manipulation.

Moreover, the SC implements a comprehensive supervisory program across regulated entities to ensure ongoing compliance and identify emerging risks. 

In 2023, there was a 4.0 per cent increase in structured warrants term sheets, with 1,515 term sheets registered, reflecting the market's role in offering investors diverse investment opportunities.

The SC's commitment to licensing fit and proper individuals for capital market activities remains unwavering. 

In 2023, all Capital Markets Services Licence (CMSL) and Capital Markets Services Representative's Licence (CMSRL) applications were processed within the service charter. 

There was a notable increase in approved new CMSL holders and registered entities, with 44 percent related to fund management and 25 percent to financial planning. Additionally, 13 new registered entities were added, including three Digital Asset Custodians (DACs). 

As of December 31 last year, 864 CMSRL applications were approved, bringing the total number of CMSRL holders to 10,272.

https://www.nst.com.my/business/corporate/2024/03/1030109/sc-keeps-vigilant-stance-uphold-efficient-secure-transparent