Changes to Bursa rules

Updates to listing requirements to promote greater transparency

KUALA LUMPUR: Bursa Malaysia has issued various amendments to the Listing Requirements for the Main and Ace markets to raise standards of disclosure and corporate governance practices.

The stock exchange said they had also introduced enhancements to promote greater transparency on matters highlighted in the auditor’s report, arising from changes in international standards of auditing, related to key audit matters and going concern.

Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan said the capital market was a dynamic environment where the rules were constantly updated to ensure their continued relevance and effectiveness.

“In this regard, the exchange has found that enhanced disclosures and corporate governance requirements are necessary to meet the growing needs of increasingly sophisticated investors,” he said in a statement yesterday.

Among the amendments to the listing requirements is the improvement to the quality of disclosures in annual reports by prescribing the disclosure of non-financial information, such as the management discussion and analysis to assist investors in making informed investment decisions, it said.

This amendment would also reduce the burden of regulatory compliance through the removal of information considered to be redundant from the annual report, it added.

Another key amendment is the enhancement to the integrity of financial statements and transparency on significant matters highlighted in the auditor’s report.

Immediate and periodic disclosures on key audit matters and matters related to going concern, and strengthening the role of the audit committee in reviewing financial statements are among the amended requirements.

Corporate governance practices of listed issuers will be enhanced by mandating poll voting for all resolutions set out in the notice of any general meeting, or in any notice of resolution.

Transparency and shareholder engagement will be improved by requiring posting of a summary of key matters discussed at annual general meetings, on the listed issuer’s website.

Bursa said the amendments would be implemented on a staggered basis, starting April 30.

These amendments were made following a review and public consultation conducted in October 2015.