| Oct 2005 |
BNM issued the Guidelines on Regulated Short-Selling of Securities in the Wholesale Money Market. The introduction of regulated short-selling is part of BNM's continuos effort to further develop a liquid bond market with an active repo and securities borrowing and lending. This would also promote better risk management by facilitating hedging of interest rate risk. |
| Jan 2005 |
BNM announced the usage of repos as a monetary
policy instrument. This would encourage market participants to
actively use repos as an alternative funding instrument, enhance
trading strategies and strengthen risk management capabilities by
encouraging banks to move towards collateralised inter-bank
transactions. |
| Oct 2004 |
Commercial banks and merchant banks were allowed
to deduct their holdings of the Ringgit marketable debt securities
in the trading book from eligible liabilities (EL) in the
computation of Statutory Reserve Requirement (SRR). This would
reduce the holding cost of these papers and promote secondary
trading of such securities and level the playing field for
commercial banks and merchant banks with that of the other players
in the bond market. |
| Sep 2004 |
Recognising the significant development of Cagamas
since its inception, the regulatory treatment for Cagamas
securities were revised and Principal Dealers were also no longer
required to bid for the primary issuance of Cagamas papers. These
would promote a more market-based pricing of Cagamas securities
and provide more flexibility for Cagamas to package new products
and widen its investor base. |
| July 2004 |
SC introduced the Guidelines on the Offering of Islamic Securities (IS Guidelines). With the released of the IS Guidelines, the PDS Guidelines no longer apply to the issuance of Islamic securities in Malaysia. |
| Apr 2004 |
Introduction of a new interest rate framework. The
new interest rate framework represents a change in the system of
implementing monetary policy and promotes more efficient pricing
by banking institutions. It does not represent a change in
monetary policy.
Under the new framework, each banking institution will now
announce its own BLR based on its cost structure and business
strategies. Banking institutions will also no longer be subject to
the maximum spread of 2.5 percentage points above BLR. This is
aimed at promoting more efficient pricing of the spectrum of
financial products being offered.
BNM liberalised its foreign exchange regulation
allowing multilateral development banks (MDBs) or multilateral
financial institutions (MFIs) to issue Ringgit denominated bonds
in the Malaysia capital market. These bonds carry 0% risk weight
under the risk-weighted capital ratio framework and allowed
deduction from eligible liabilities for computation of statutory
reserves requirements. For resident insurers, these bonds are
qualified as low risk assets to support their margin of solvency. |
| Dec 2003 |
SC announced the release of the Guidelines on the Offering of Structured Products. The introduction of these guidelines will facilitate universal brokers, merchant banks, commercial banks including Islamic banks and performance-guaranteed Special Purpose Vehicles established by any of the above-mentioned institutions to issue "structured products". |
| Mar 2003 |
The Malaysian capital market entered the final phase of its move from merit-based to a DBR framework for fund raising. The SC released of seven revised fund-raising guidelines, which includes the PDS Guidelines and the ABS guidelines. |
| Oct 2002 |
Universal Brokers were allowed to participate in
the unlisted debt securities in order to expand market players in
the domestic bond market. Following this measure, Universal
Brokers have been admitted as members of FAST, BIDS and RENTAS. |
| Dec 2001 |
Issuance of Guideline on Securities Borrowing and
Lending (SBL) Programme under RENTAS and Guidance Notes on
Repurchase Agreement Transactions. The Guideline aims to provide a
uniform set of rules to govern the conduct and obligations of the
market participants with respect to the securities borrowing and
lending transactions and repo and reverse repo transactions. |
| Oct 2001 |
Rules on FAST, BIDS & RENTAS (2001) was issued to
replace the Rules issued in 1999. |
| Feb 2001 |
The Capital market Masterplan was launched. It sets the strategic position and future direction of capital market development for Malaysia. |
| Jul 2000 |
Following the amendments to the Securities
Commission Act 1983, the Companies Act 1965, the Banking and
Financial Institutions Act 1989, the Futures Industry Act 1993 and
the Securities Industry (Central Depositories) Act 1991, the
Securities Commission (SC) became the single regulator for all
fund raising activities. The SC is the approving and registering
authority for prospectuses in respect of all securities other than
securities issued by unlisted recreational clubs. The Registrar of
Companies is responsible for the lodgement of prospectuses.
The introduction of the following guidelines and regulations, by the SC, which took effect on 1 July 2000:
- Guidelines on the Offering of Private Debt Securities
- Guidelines on Prospectus Content for Debentures
- Securities Commission (Shelf Registration Scheme for Debentures) Regulations 2000
- Guidelines on Minimum Content Requirement for Trust Deeds
- Guidelines on Prospectuses for Equity ad Equity-linked Issues
The Controller of Foreign Exchange issued the Exchange
Control Guidelines on the Issuance of Private Debt Securities for
Lead Arrangers to ensure compliance with the exchange control
conditions/requirements under the new regulatory framework.
The Banking and Financial Institutions (Amendments
of Definition of Deposit) Order 2000 has been gazetted with effect
from 1 July 2000. With this Order, non-licensed institutions would
be allowed to enter into repurchase agreements (repo) transactions
with licensed institutions under the Banking and Financial
Institutions Act 1989. |
| Apr 2000 |
In a move to spur fund raising activities in the
bond market, a general permission was granted by the Controller of
Foreign Exchange for the issuance of private debt securities so
long as the proceeds from the bond issues were not used to finance
investments abroad or refinancing off-shore borrowings. |
| Oct 1999 |
The Capital Market Master Plan was initiated to
chart the strategic positioning and future direction of the
Malaysian capital market for the next ten years. |
| Jul 1999 |
Code of Conduct and Market Practices for
Malaysian Scripless Securities Market Under the Real Time
Electronic Transfer of Funds and Securities (RENTAS) System were
introduced to facilitate the conversion from the SPEEDS system to
the RENTAS system. |
| Jun 1999 |
The National Bond Market Committee (NBMC) was
established to provide the policy direction and to rationalise the
regulatory framework for the development of the bond market. As an
initial step to rationalise the regulatory framework, NBMC
announced that the Securities Commission would be the single
regulatory authority for the supervision and regulation of the
corporate bond market.
The members of NBMC consist of the Ministry of
Finance, Economic Planning Unit of the Prime Minister's
Department, Bank Negara Malaysia, Securities Commission, the
Registrar of Companies and the Malaysia Stock Exchange. |
| Aug 1996 |
Amendment to the Companies Act 1965 to widen the
investors' base and to simplify the requirements on the submission
of prospectus. |
| Mar 1993 |
The setting up of Securities Commission following
the Government's decision to develop a more focused regulatory
authority over an increasingly sophisticated capital market. |
| Jan 1990 |
Code of Conduct and Market Practices for
Scripless Trading in the Malaysian Securities Market was
introduced to lay down the basic market rules. |
| Jan 1989 |
Introduction of The Guidelines for the Issuance
of Private Debt Securities to ensure orderly development of
the market and to protect investors' interest. |
