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Securities Industry
LAWS OF MALAYSIA
REPRINT
Act 280
SECURITIES INDUSTRY
ACT 1983
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
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ACT 280
Laws of Malaysia
SECURITIES INDUSTRY ACT 1983
Date of Royal Assent
... ... ... ... ...
9 March 1983
Date of publication in the Gazette ... ...
10 March 1983
PREVIOUS REPRINT
First Reprint
...
...
...
...
...
2001
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Securities Industry
LAWS OF MALAYSIA
Act 280
SECURITIES INDUSTRY ACT 1983
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1.
Short title
2.
Interpretation
3.
Associated person
4.
Interest in securities
PART II
CAPITAL ISSUES COMMITTEE
5.
(Deleted)
6.
(Deleted)
PART III
STOCK EXCHANGES AND CLEARING HOUSES
7.
Establishment of stock markets
8.
Power of Minister to approve a stock exchange
8A. Recognized clearing house
8B. Withdrawal of recognition of clearing house
8C. Effect of withdrawal of recognition of clearing house
8D. Appointment of directors of stock exchange and exchange holding
company
9.
Commission to approve amendment to rules of stock exchange
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9A. Commission to approve amendment to rules of recognized clearing
house
9B. Duties of stock exchange
9C. Closure of stock exchange in emergency
9D. Withdrawal of approval of stock exchange
9E. Effect of withdrawal of approval of stock exchange
10.
Exchange holding company, stock exchange and recognized clearing
house to provide assistance to Commission
11.
Powers concerning compliance with the provisions of this Act and rules
of the stock exchange, etc.
11A. Power of Commission to prohibit trading in particular securities
11B. Suspension order relating to stock exchange, recognized clearing house
or central depository
11C. Exchange holding company
11D. Power of Minister to approve an exchange holding company
11E. Annual Regulatory Report on compliance with ongoing requirements
11F. Special report by exchange holding company about compliance with
ongoing requirements
11G. Withdrawal of approval of an exchange holding company
11H. Effect of withdrawal of approval of exchange holding company
11I. Listing of exchange holding company on stock exchange
11J. Duties of an exchange holding company
11K. Risk Management Committee of exchange holding company
11L. Power to issue directions
11M. Restriction on exchange holding company from reducing its shareholding
11N. Disposal and acquisition of assets, etc.
11O. Control in shareholding of exchange holding company
11P. Power of Commission upon contravention of sections 11M, 11N and 11O
PART IV
LICENCES
12.
Dealer's licence
13.
Dealer's representative's licence
14.
Investment adviser's licence
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Securities Industry
Section
15.
Investment representative's licence
15A. Fund manager's licence
15B. Fund manager's representative's licence
15C. Contravention of section 12, 13, 14, 15, 15A or 15B
16.
Application for licence or renewal
17.
Grounds for refusal to grant or renew licence
17A. Licensed person to notify Commission of disqualifying event
18.
Grant or renewal of licences
19.
Commission's power to vary licences in certain circumstances
20.
Power of Commission to enquire into securities transactions
20A. Minimum financial requirements
21.
Power of Commission to impose conditions or restrictions on licences
22.
False statements
23.
Deposit to be lodged in respect of dealer's or fund manager's licence
24.
Period of licence
25.
Notification of change in particulars
26.
Register of licence holders
27.
Revocation and suspension of licence
28.
Appeal
28A. Surrender of licence
28B. Powers concerning compliance with conditions of licence, etc., by
licensed persons
PART V
RECORDS
29.
Application of this Part
30.
Register of securities
31.
Notice of particulars to Commission
32.
Defence to prosecution
33.
Production of register
34.
Particulars of financial journalists
35.
Commission may supply copy of the extract of a register
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PART VI
CONDUCT OF SECURITIES BUSINESS
Section
36.
(Deleted)
37.
Certain representation prohibited
38.
Issue of contract notes
39.
Certain persons to disclose certain interests in securities
40.
Dealings as principal
40A. Recommendations by adviser
40B. Duty to furnish Commission with such returns and information as
Commission requires
40C. Additional obligations on licensed persons
41.
Shortselling
PART VII
ACCOUNT AND AUDIT
DIVISION 1
Accounts--Dealers
42.
Application of this Division
43.
Accounts to be kept by dealers
44.
Certain moneys received by dealers to be paid into a trust account
44A. Property other than moneys received by dealers
45.
Purposes for which moneys may be withdrawn from trust account
45A. Dealer to supply copies of entries in books
46.
Moneys in trust accounts not available for payment of debts, etc.
47.
Claims and liens not affected
DIVISION 2
Accounts--Fund Managers
47A. Application of Division
47B. Accounts to be kept by fund manager
47C. Operation of trust account
47D. Client's moneys
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Securities Industry
Section
47E. Right to copies of book entries, inspection of contract notes, etc.
47F. Commission's power to transfer client's property and moneys to a trust
company, etc., under certain circumstances
DIVISION 3
Audit
48.
Appointment of auditor
48A. Associates not to be appointed as auditors
49.
Relevant person to lodge auditor's report
50.
Duties of auditor
51.
Duty of relevant person or its directors or officers to furnish information
52.
Power of Commission to appoint independent auditor, etc.
53.
Power of Commission to appoint an independent auditor, etc., upon
application of client
54.
Independent auditor, etc., to report to Commission
55.
Powers of independent auditor, etc.
56.
Prohibition against communication of certain matters by independent
auditor, etc., and employees
57.
Books, accounts and records to be produced upon demand
58.
Penalty for destroying, concealing or altering records or sending records
or other property out of Malaysia
59.
Rights of board of stock exchange to impose obligations on participating
organization
PART VIII
COMPENSATION FUND
60.
Interpretation
61.
Establishment of compensation fund
62.
Moneys constituting compensation fund
63.
Funds to be kept in separate account
64.
Payments out of compensation fund
65.
Accounts of compensation fund
66.
Requirement of relevant stock exchange to pay portion of net income
into compensation fund
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67.
Contributions to compensation fund
68.
Provision where compensation fund exceeds fifty million ringgit
69.
Levy in addition to annual contribution
70.
Power of stock exchange to make advances to compensation fund
71.
Investment of moneys in compensation fund
72.
Application of compensation fund
73.
(Deleted)
74.
(Deleted)
75-77.
(Deleted)
78.
Power of relevant stock exchange to require production of securities
79.
Subrogation of relevant stock exchange to rights and remedies of
claimant upon payment from compensation fund
80.
Payment of claims only from compensation fund
81.
(Deleted)
82.
Power of relevant stock exchange to enter into contract of insurance
83.
Application of insurance moneys
83A. Moneys in compensation fund where relevant stock exchange wound
up
83B. Regulations in respect of compensation fund
PART VIIIA
CAPITAL MARKET DEVELOPMENT FUND
83C. Establishment of Capital Market Development Fund
83D. Assets constituting Fund
83E. Objects of the Fund, etc.
83F. Membership of the Board
83G. Tenure of office
83H. Resignation and revocation of appointment
83I. Vacation of office
83J. Quorum and procedures of meetings
83K. Disclosure of interest
83L. Conservation of the Fund
83M. Financial year
83N. Accounts and audit
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Section
83O. Power of Minister in relation to the Board
83P. Dissolution of the Fund
83Q. Power to make regulations
PART IX
TRADING IN SECURITIES
DIVISION 1
Prohibited Conduct
84.
False trading and market rigging transactions
85.
Stock market manipulations
86.
False or misleading statements, etc.
87.
Fraudulently inducing persons to deal in securities
87A. Use of manipulative and deceptive devices
87B. Person or transaction to whom or which sections 84, 85, 86, 87 and
87A do not apply
88.
Dissemination of information about illegal transactions
88A. Civil liability for contravention of sections 84, 85, 86, 87, 87A and 88
88B. Penalty for offence under Division 1
88C. Acts and omission within and outside Malaysia relating to prohibited
conduct under Division 1
DIVISION 2
Insider Trading
89.
Information
89A. Information generally available
89B. Material effect on price or value of securities
89C. Trading in securities
89D. Reference to "procure"
89E. Prohibited conduct of person in possession of inside information
89F. Proof of contravention of section 89E
89G. Secrecy