KUALA LUMPUR, Oct 1 - Bursa Malaysia, the former Kuala Lumpur Stock Exchange, has asked the government to relax shareholding requirements that mar the market's attractiveness, industry officials say.
The requirements - which stipulate minimum bumiputera shareholdings - are said to be making local companies with overseas assets reluctant to list locally, and driving a growing number of them to go private or list overseas.
Thirty per cent of a listed company's equity must be set aside for bumiputeras, but this is not really being contested.
The main point of contention is that should a company top-up its capital base - say, through a rights issue - regulators can demand that bumiputera equity be restored to 30 per cent if it has been sold down. This has always been a concern because shareholders rightfully complain about earnings dilution.
The bourse wants the rules changed so that once a company is listed and the 30 per cent bumiputera equity requirement is met, it should no longer be subject to any top-up conditions.
.. MORE
No comments:
Post a Comment