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  3. Bursa Malaysia expands Approved Íø±¬³Ô¹Ï criteria to boost market vibrancy
Latest news
Bursa Malaysia expands Approved Íø±¬³Ô¹Ï criteria to boost market vibrancy
13 June 2023 Malaysia
Reporter: Carmella Haswell

Image: NEWTRAVELDREAMS/stock.adobe.com
Bursa Malaysia has expanded its criteria for Approved Íø±¬³Ô¹Ï as part of its commitment to foster a dynamic and vibrant market.

The Kuala Lumpur-based stock exchange of Malaysia has reduced the daily market capitalisation requirement from RM500 million (US$108.2 million) to RM200 million (US$43.3 million), therefore providing a broader selection of Approved Íø±¬³Ô¹Ï aimed at meeting investors' evolving needs.

Approved Íø±¬³Ô¹Ï are securities that have met the criteria prescribed by the exchange and may be utilised for purposes of securities borrowing and lending, as well as short selling.

Bursa Malaysia says the expansion will provide a greater ability for investors to manage their portfolios and boost vibrancy in securities borrowing and lending activities.

The Pan Asia Íø±¬³Ô¹Ï Lending Association (PASLA) welcomed the news regarding short selling, which the Association believed would support greater liquidity and more efficient price discovery in the Malaysian market.

According to PASLA, all listed exchange-traded funds (ETFs), with the exception of inverse ETFs, will also be declared as Approved Íø±¬³Ô¹Ï for short-selling.

CEO of Bursa Malaysia Datuk Muhamad Umar Swift comments: “By broadening access and choice for investors, we are solidifying our commitment to improving market efficiency.

“As a maturing market, it is vital that we offer a marketplace with robust facilities to cater to the differing needs of investors, while remaining focused on ensuring a vibrant, fair and orderly market.â€
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