This article first appeared in The Edge Financial Daily on March 27, 2020

KUALA LUMPUR: Bursa Malaysia Bhd has announced seven new relief measures targeted at broader participants in the capital market.

These measures are designed to help lessen the financial burden and provide greater flexibility in navigating the challenging period due to Covid-19, it said in a statement.

Key measures include an automatic one-month extension to submit financial statements for Bursa’s Main and ACE Markets and a 50% rebate for the annual listing fees for 2020 listed issuers.

Bursa Malaysia said it allows an extension of time frame for the submission of regularisation plan from the existing 12 months to 24 months from the date it was first announced.

The exchange will give more flexibility and discretion to brokers by removing the requirement to automatically liquidate their clients’ margin accounts if equities in the margin accounts fall below 130% of the outstanding balance.

Bursa is also expanding the list of collaterals for purposes of margin financing, has shortened counter service hours by market participants following the movement control order (MCO) and allowing an extension of time for the submission of specified physical Central Depository System (CDS) transaction forms to Bursa Malaysia Depository Sdn Bhd.

Bursa chief executive officer Datuk Muhamad Umar Swift said Covid-19 has quickly evolved from a public health issue to a source of serious economic challenge.

“We are making concerted efforts to ease the burden and help companies and market participants directly impacted by the crisis.

“We will continue engaging with capital market participants to ensure our endeavours are effective. We aim to aid market participants weather the sudden changes in their operating conditions or cash flows, while supporting the nation’s efforts to mitigate the economic and societal impact of Covid-19,” said Muhamad Umar.

The measures announced yesterday complement the broader relief effort under the Economic Stimulus Package 2020 (ESP 2020) announced by the government on Feb 27, 2020.

Under the ESP 2020, the Securities Commission Malaysia (SC) and Bursa Malaysia have agreed to waive all listing-related fees for 12 months for companies seeking a listing on the ACE and LEAP Markets, as well as for companies on the Main Market, with a market capitalisation of less than RM500 million.

For more details of the relief measures, visit https://www.bursamalaysia.com.