Changes in CRA's shareholdings resulting in more than 20% control require SC approval

KUALA LUMPUR: The Securities Commission Malaysia (SC) has clarified that any change of shareholdings that resulted in a person controlling 20 per cent or more of the paid-up capital of a credit rating agency (CRA) required the prior approval of the capital market regulator.

Commenting on recent news reports on possible changes to the shareholding of RAM Holdings Bhd (RAM), it said SC’s prior approval is also required for any subsequent cumulative increase in shareholding of 10 per cent or more of the paid-up capital of the CRA.