SC introduces enhanced listing framework


Among the key features of the enhanced framework is the introduction of a mandatory pre-submission holistic consultation between the SC and key stakeholders including the applicant, principal advisers, lawyers, reporting accountants and valuers, the SC said.

PETALING JAYA: The Securities Commission (SC) has introduced an enhanced initial public offering (IPO) framework, aimed at promoting a higher level of shared responsibility among key stakeholders involved in the submission of an IPO.

Among the key features of the enhanced framework is the introduction of a mandatory pre-submission holistic consultation between the SC and key stakeholders including the applicant, principal advisers, lawyers, reporting accountants and valuers, the SC said.

The SC said the mandatory pre-submission session was important for upfront engagements of any material issues and concerns prior to the submission of an IPO application, thereby ensuring the proposed IPO is vetted more thoroughly before an actual submission.

All key stakeholders must be present for such discussions. This new framework will take effect on Jan 1,2021. The IPO framework was last revamped in 2008.

At a briefing yesterday, the SC also said discussions were being held with Bursa Malaysia for the latter to take over the current role of the SC when it came to regulatory framework for the ACE Market.

This would include the potential migration of the entire ACE framework, including the registration of prospectus, to Bursa by the first half of next year.

Both parties will be working together to enhance Bursa’s internal processes and resources for this added task.

Meanwhile, under the enhanced IPO framework, which is also applicable for reverse takeover submissions, the SC said there would also be a longer draft exposure period, which would stretch until the date of registration of the prospectus as opposed to the current 15-market day exposure period.

This, the regulatory body said, would allow for more public participation with regards to feedback.

Additionally, the current fixed-time period for the processing of an IPO application will be removed.

Instead, there will be no fixed-time charter for the processing of an application but once an application exceeds the six-month validity period, it will lapse.

Under the refreshed framework, the SC also said there would be a liberalisation of the approved principal adviser and qualified senior personnel regime, which will see a higher number of qualified professionals involved in the submission of an IPO.

To this end, the SC has revised the Licensing Handbook, which includes the incorporation of the eligibility criteria of such individuals.

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