KUALA LUMPUR: The Securities Commission Malaysia (SC) has decided there is no necessity at present to proceed with the proposed legislation to establish a Bursa Malaysia Bhd
subsidiary (Bursa Malaysia RegSub) to assume the regulatory functions currently undertaken by the exchange holding company.
In a filing on its website today, Bursa Malaysia said it has received a letter from the SC dated March 19, 2026, on the closure to the proposed establishment of Bursa Malaysia RegSub.
The proposed Bursa Malaysia RegSub was first announced on Feb 25, 2020, with the aim of strengthening the group’s conflict of interest (COI) governance framework with clearer delineation of its regulatory functions and commercial operations, following Bursa Malaysia's roles as a market operator, frontline regulator and self-listed company.
The SC, in its letter, noted that since that announcement, Bursa Malaysia has strengthened its COI framework by incorporating, among others, the recommendations relating to the proposed Bursa Malaysia RegSub in its governance model.
"In light of the above enhancements undertaken by Bursa Malaysia thus far, the SC viewed that there was no necessity to proceed with the proposed legislation currently and would continue to monitor and assess the effectiveness of the current governance structure,” Bursa Malaysia said.
The enhancements made included the Regulatory and Conflicts Committee’s (RACC) membership composition, functions and governance structure, such as enhancing the RACC’s independence vis-a-vis the management of Bursa Malaysia.
In particular, it was noted that the RACC now consists majority external members, including the chairman of the committee.
"The SC took the position that the current, progressively strengthened RACC structure is adequate and practical towards the effective discharge of Bursa Malaysia's regulatory functions,” Bursa Malaysia said. - Bernama
