KUALA LUMPUR, April 2 — Bursa Malaysia Securities Bhd plans to enhance the regulatory framework for listed collective investment schemes (CIS) and business trusts under the Main Market Listing Requirements (Main LR).

In a statement today, the exchange said, the CIS included the Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs) and Closed-End Funds (CEFs).

Bursa Malaysia said the enhancements resulted from a review of the existing CIS framework by the Securities Commission Malaysia and the exchange, aimed at promoting growth and greater business efficiency of CIS and business trusts listed on the Main Market.

"Following the review, the Capital Markets and Services Act 2007 has been amended, in which the function to approve new issue of securities by listed CIS and business trusts (other than debt securities or pursuant to a significant change in the business direction or policy of a business trust), is now transferred to Bursa Malaysia as the approving authority.

"This will in turn improve the time-to-market and reduce regulatory costs which will enhance the overall market attractiveness and competitiveness of CIS and business trust in the Malaysian capital market,” it said.

The key enhancements included improving efficiency and time-to-market of secondary fund raising through issue of securities by listed CIS and business trust, strengthening unit holder protection and facilitating greater operational efficiency by enhancing the transaction framework governing listed REITs under the Main LR, it said.

"The list of enhancements also includes introducing other REIT enhancements to promote growth in line with the liberalisations relating to permitted investments under the SC’s guidelines on Listed REITs, strengthening REITs’ corporate governance to instil greater investor confidence and enhancing periodic reporting framework for CIS and business trust to improve quality of disclosures,” it said.

Bursa Malaysia said most of the amendments to the Main LR would take effect starting April 9, 2018 while enhancements relating to corporate governance and additional disclosures in the quarterly reports and annual reports would have a longer grace period for compliance.

It added that the amendments were in line with Bursa Malaysia’s continuous efforts to position itself as a conducive listing and capital raising destination, it said. — Bernama