Today's Pick (28/05/13/91/1016) SC reveals framework for unlisted market

SC reveals framework for unlisted market


BUILDING THE FOUNDATION: Online trading to allow enterprises to access risk capital

THE Securities Commission Malaysia (SC) unveiled a conceptual framework for an unlisted market yesterday, taking it a step closer towards establishing a trading platform for unlisted companies.

The unlisted market, first announced in July last year and operates in an electronic manner, will be the country’s first online platform to trade unlisted securities and alternativeinvest ment products (MyULM).

In a statement yesterday, SC said the online trading platform for unlisted market is one of the measures identified under the Capital Market Masterplan 2 to address the need of an unlisted securities platform to supply long-term risk capital and expand the financing base for local enterprises.

Such a platform will allow enterprises to access risk capital without the formalities and rigours of the listed market and for them to later graduate to the listed market.

Internationally, online social game maker Zynga and networking giant Facebook went through the unlisted market phase before going public.

SC said the online trading platform is being developed in consultation with key stakeholders, including government agencies and the private sector.

More than 100 market participants attended an industry briefing held here yesterday.

The SC said the platform envisions to be a one-stop gateway in raising capital and trading of securities of start-up companies and SMEs.

“Under this platform, fundraising by these SMEs will be conducted in a more efficient, organised, and transparent manner,” it said.

The SC had carried out jurisdictional studies and conducted a series of engagement sessions with stakeholders last year.

“The conceptual framework has been internally approved and currently, the SC is conducting further indepth engagements with
stakeholders,” it said.

The platform will be expanded depending on market readiness to include other alternative asset classes like unlisted bonds and
unlisted business trusts.

The SC has also called upon interested parties to submit their proposals to operate the platform.

Source: New Straits Times
Date : 28 May 2013
Today's Pick (28/05/13/91/1016)