KUALA LUMPUR (April 24): Bursa Malaysia Bhd has amended the Main and ACE Market listing requirements to provide securities holders an option to subscribe for rights shares, exercise convertible securities and participate in a dividend reinvestment scheme (DRS) by electronic means.

In a statement, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said it is timely to modernise and enhance processes that are currently being done manually.

“Facilitating the electronic application of corporate exercises will deliver immense sustainable benefits for the capital market.

“It will provide greater efficiency and improve time-to-market for listed issuers to undertake corporate exercises. For investors, it offers greater convenience and improved customer experience,” he said.

With these amendments, termed eCorporate Exercise Amendments, listed issuers are required to offer an option to its securities holders to electronically subscribe and pay for rights issues, convert and pay for convertible securities and elect to participate in a DRC.

“The COVID-19 pandemic has created a pivotal time for an increased application of, and reliance on, technology in our marketplace. We will continue to innovate and deliver more new initiatives to improve the investment experience of our valued investors, and to enhance the overall attractiveness of the Malaysian capital market,” said Muhamad Umar concluded.

The amendments will take effect only for any rights issue, issuance of convertible securities and DRS announced on or after Feb 2, 2021.

Meanwhile, the bourse encouraged listed issuers to offer the electronic option to their securities holders earlier, voluntarily.