Elaborate and Explain the Organizational Structure, Powers & Function of the Securities Commission with a Brief Comparison and/or Reference to the Kuala Lumpur Stock Exchange and Kuala Lumpur Commodities Exchange.
Introduction
Aside from the Companies Act 1965, the primary laws governing the regulation of securities and futures in Malaysia are the Securities Industry Act 1983, the Securities Commission Act 1993 and the Futures Industry Act 1993. The term ‘securities laws’ is defined in the Securities Commission Act as meaning these Acts as well as the Securities Industry (Central Depositories) Act 1991: section 2. References to these laws also include references to any regulations, rules, orders, notifications and other subsidiary legislation made under them: section 2A, Securities Commission Act.
The Securities Industry Act , which is formed on the provisions and structure of the Australian Corporations Law and the Hong Kong Securities and Futures Commission, is part of the securities regulation regime, which administers the issuance, distribution and trading of securities in Malaysia. The basic objective of setting up the Commission was to put in place a central authority to implement and oversee the regulatory framework for trade in securities and futures . The duty for regulatory oversight of trading in securities rests with the Securities Commission established under the Securities Commission Act (SCA).
Prior to 1993, there was no single government body that was given the responsibility for overseeing the development of the Malaysian capital market . The securities industry in Malaysia was then regulated by a number of bodies such as the Capital Issues Committee, the Panel of Takeovers and Mergers, the Registrar, Foreign Investment Committee, Ministry of International Trade and Industry (MITI) and Bank Negara Malaysia (BNM/Central Bank). As of March 1, 1993, the securities industry entered into a new era with the formation of a wholly new centralized regulatory body called the Securities Commission (the Commission) when the SCA was brought into force. With the formation of the Commission, the Capital Issues Committee and the Panel of Takeovers and Mergers were
Aside from the Companies Act 1965, the primary laws governing the regulation of securities and futures in Malaysia are the Securities Industry Act 1983, the Securities Commission Act 1993 and the Futures Industry Act 1993. The term ‘securities laws’ is defined in the Securities Commission Act as meaning these Acts as well as the Securities Industry (Central Depositories) Act 1991: section 2. References to these laws also include references to any regulations, rules, orders, notifications and other subsidiary legislation made under them: section 2A, Securities Commission Act.
The Securities Industry Act , which is formed on the provisions and structure of the Australian Corporations Law and the Hong Kong Securities and Futures Commission, is part of the securities regulation regime, which administers the issuance, distribution and trading of securities in Malaysia. The basic objective of setting up the Commission was to put in place a central authority to implement and oversee the regulatory framework for trade in securities and futures . The duty for regulatory oversight of trading in securities rests with the Securities Commission established under the Securities Commission Act (SCA).
Prior to 1993, there was no single government body that was given the responsibility for overseeing the development of the Malaysian capital market . The securities industry in Malaysia was then regulated by a number of bodies such as the Capital Issues Committee, the Panel of Takeovers and Mergers, the Registrar, Foreign Investment Committee, Ministry of International Trade and Industry (MITI) and Bank Negara Malaysia (BNM/Central Bank). As of March 1, 1993, the securities industry entered into a new era with the formation of a wholly new centralized regulatory body called the Securities Commission (the Commission) when the SCA was brought into force. With the formation of the Commission, the Capital Issues Committee and the Panel of Takeovers and Mergers were