This article first appeared in The Edge Financial Daily, on July 20, 2016.

KUALA LUMPUR: Bursa Malaysia Bhd is seeking public feedback on proposals to enhance the attractiveness and competitiveness of the exchange as a destination for capital-raising and investment in relation to Collective Investment Schemes (CIS).

It published a consultation paper yesterday containing proposals for promoting the exchange as a one-stop centre for all secondary fundraising by listed issuers, as Bursa Malaysia will be the single approving authority for all new issues of securities by CIS post listing, except for debt securities.

“The exchange has undertaken a holistic review of the regulatory framework under the Main Market Listing Requirements governing the post-listing obligations of all collective investment schemes, such as Real Estate Investment Trusts (“REITs”), Exchange Traded Funds  (“ETFs”) and closed-end funds, (“CEFs”)” said Bursa Malaysia.

The aim is to improve the quality of disclosures, strengthening unit holders’ protection and facilitating greater operational efficiency and flexibility for the CIS, it added.

“The review will ensure a conducive post-listing regulatory framework governing the CIS, for both issuers and investors,” said Bursa Malaysia CEO Datuk Tajuddin Atan. “The proposed streamlining of the regulatory functions between the Securities Commission and the exchange will promote greater market efficiency and business efficacy, improve the time-to-market especially in secondary fundraising and thus enable our CIS to become more competitive.”

Bursa Malaysia is also seeking to strengthen key aspects of investor protection of the CIS. At present, only related party transactions and disposal of real estate exceeding 50% of the REIT’s total asset value will require unit holders’ approval. Under this review, unit holders of REITs will be empowered with similar rights as shareholders of listed corporations.

The exchange is also proposing various liberalisations which are aimed at easing regulatory burden and promoting business efficacy where appropriate.

The public consultation paper is available on the Bursa Malaysia website at www.bursamalaysia.com.