KUALA LUMPUR (Nov 23): Bursa Malaysia Bhd is to expand its Green Lane Practices (GLP) scheme to reward good corporate governance and disclosure practices among listed companies. 

In a statement today, it said incentives provided under the scheme will be expanded, while the pool of eligible listed companies (which is currently limited to members of the FBMKLCI) will be enlarged to include firms within the FTSE Bursa Malaysia Top 100 Index. 

The scheme was first launched on Aug 29, 2017.
 
Bursa said it has ceased the pre-vetting of circulars issued to qualified listed companies during the initial phase of the GLP, except those involving more complex proposals (major disposals and or privatisation, related to party transactions and transactions involving mineral, oil and gas assets). 

Qualified companies can issue such circulars to its shareholders as soon as the circulars are ready, without having to gain clearance from the exchange. 

Under the expanded regiment, fast-tracking processing of complex circulars (which still require exchange approval) submitted by qualified companies and other applications, will be conducted. 

Bursa said the privileges associated with GLP are aimed at facilitating a more efficient time-to-market for corporate proposals of qualified companies, but also acts as a method of recognising and incentivising listed companies that move towards good governance and disclosure practices.

The exchange will continue to oversee the list of qualified companies and ensure continuance of good corporate governance conduct, and that compliant practices are maintained by such companies, highlighting its removal rights with regards to the GLP provision.

“In meeting the intended objectives of the GLP, the exchange will continue to review the list of qualified companies and ensure that these companies continue to observe corporate governance conduct and compliance practices, and [the exchange] reserves the right to remove a company from having GLP privileges as it deems fit,” the filing added.