SC enhances guidelines for prospectus and equity

PETALING JAYA: The Securities Commission Malaysia (SC) has revised the prospectus and equity guidelines to enhance the disclosure requirements of abridged prospectuses and circulars related to certain proposals.

The proposals refer to those that would result in a significant change in the business direction or policy of a listed corporation, including back-door listings and reverse take-overs.

“The amendments aim to make abridged prospectuses and circulars more reader friendly while ensuring that disclosures focus on meaningful information and are useful in helping shareholders in making informed investment decisions,” the SC said.

The amendments, which will come into effect on March 13, 2019, were made after extensive consultation with key stakeholders such as principal advisers, reporting accountants, independent advisers, investors and representatives of listed corporations.

However, market participants and listed corporations are encouraged to adopt these revisions earlier for the immediate benefit of shareholders and investors.

Among the notable revisions are prospectus are now required to dedicate paragraphs for accountant’s statement and material transactions to disclose any transaction which may have a material effect on the operations, financial position and results of the corporation.

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