Changes to Capital Markets and Services Act set for first reading today
Amendment to allow setting up of regulatory subsidiaries to fulfil obligations under the law
KUALA LUMPUR – The Capital Markets and Services (Amendment) 2023 Bill will be tabled by Deputy Finance Minister II Steven Sim for its first reading in the Dewan Rakyat today. He also told the Dewan Rakyat today that the bill’s second reading has been scheduled for the current parliamentary sitting.
The amendment to the Capital Markets and Services Act 2007 is to allow for the setting up of regulatory subsidiaries to fulfil their obligations under the act. Amending its Section 21 would enable regulatory subsidiaries to have the power to take action without preventing other subsidiaries from taking action when needed.
Furthermore, the amendment would also allow the Securities Commission (SC) to change, add, or cancel estimates made.
The amendment was also intended to insert the new Section 21A to authorise the SC to order a holding company in Bursa Malaysia to set up a regulatory subsidiary if required.
Other amendments include Section 26 to expand the SC’s power to generate orders for regulatory subsidiaries and Section 376 to expand the scope of indemnity for regulatory subsidiaries and any party acting on their behalf.
– Bernama, June 12, 2023
