In a spate of recent announcements, Bursa Malaysia Securities Berhad, Malaysia’s Stock Exchange, and the Securities Commission announced several amendments to the Main & Second Board Listing Requirement (LR) and to the MESDAQ market listing requirements (MMLR). While some amendments focused on tightening listing rules, especially those relating to the financial health of listed companies, other amendments significantly liberalised previously restrictive rules.
The LR amendments of 5 May, 2006, imposed stricter requirements on the financial health of public limited companies (plcs). The categories of financially distressed plcs and those with inadequate levels of operations were expanded by the lowering of thresholds and financial ratios. This will result in a wider net cast to capture such recalcitrant plcs (as at 12 June, 2006, 34 companies have announced that they are plcs affected by the revised LR).
