The Securities Commission has introduced a set of enhanced guidelines aimed at promoting greater protection for shareholders and investors, as part of its continued efforts to further develop a facilitative regulatory framework for fundraising.
The new guidelines came into effect on the 27th April 2006, replacing existing provisions in the policies and guidelines on issue/offer of securities.
Under the enhanced guidelines, issuers intending to undertake placements under general mandate are now required to comply with various requirements, which include the size of issuance of securities up to 10% of the nominal value of the issued and paid-up capital of the issuers. The other areas are pricing of securities issued pursuant to the placement; types of places; and role of advisors as placement agents in ensuring compliance.
Placement of securities that depart from the requirements must be subjected to the prior approval of the issuer shareholders on the precise terms and conditions of the placements at the general meetings. Furthermore, interested parties connected to the placements are required to abstain from voting at the general meeting.
Applications for placements under general mandate that fully comply with the new guidelines on placement of securities and the format and content of applications for fundraising under the issues guidelines will be given immediate decision upon application. |
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