Module 6 Study Note Flashcard
Question:
What is the objective of the Rules of Bursa Malaysia Securities Berhad?
Answer:
To ensure fair, transparent, and efficient trading practices in the Malaysian securities market.
Question:
Define "insider trading" as per the Capital Markets and Services Act 2007.
Answer:
Insider trading involves trading based on material, non-public information.
Question:
What is the role of Bursa Malaysia Securities Berhad?
Answer:
It operates and regulates the securities exchange in Malaysia.
Question:
What is the primary purpose of the Securities Commission Act 1993?
Answer:
To regulate and supervise the Malaysian capital market to ensure fair and efficient functioning.
Question:
State the listing requirements for the Main Market of Bursa Malaysia.
Answer:
Includes financial criteria, public shareholding spread, and corporate governance standards.
Question:
What does the Rules of Bursa Malaysia Securities Clearing Sdn Bhd cover?
Answer:
Procedures and requirements for clearing and settlement of trades.
Question:
What is required of participating organizations in the Bursa Malaysia Trading Manual?
Answer:
Adherence to trading procedures and maintaining market integrity.
Question:
Differentiate between the ACE Market and the LEAP Market.
Answer:
ACE Market is for emerging companies; LEAP Market is for sophisticated investors and SMEs.
Question:
What are "Unlisted Capital Market Products" under the Lodge and Launch Framework?
Answer:
Financial products not listed on an exchange but registered with the Securities Commission.
Question:
Define "market misconduct" according to the Guidelines on Market Conduct.
Answer:
Includes insider trading, market manipulation, and false trading.
Question:
What are the key components of the Guidelines on Prevention of Money Laundering and Terrorism Financing?
Answer:
Customer due diligence, record-keeping, and suspicious transaction reporting.
Question:
What is the Licensing Handbook about?
Answer:
Provides guidelines for licensing of market intermediaries and representatives.
Question:
Describe the "fit and proper" criteria for licensed representatives.
Answer:
Includes integrity, competence, financial soundness, and qualifications.
Question:
What does "material information" refer to in the context of the Capital Markets and Services Act?
Answer:
Information that would likely affect the price of securities or investment decisions.
Question:
Explain "corporate governance" in the context of Bursa Malaysia’s listing requirements.
Answer:
It involves practices ensuring transparency, accountability, and fairness in a company’s management.
Question:
What is the significance of public shareholding spread?
Answer:
Ensures a minimum level of public ownership to maintain market liquidity and transparency.
Question:
How does Bursa Malaysia ensure fair trading practices?
Answer:
Through regulations, surveillance, and enforcement of trading rules.
Question:
What is the penalty for insider trading under Malaysian law?
Answer:
Includes fines, imprisonment, or both, depending on the severity of the offense.
Question:
What is "market manipulation" as per the Securities Commission Act 1993?
Answer:
Activities intended to deceive or artificially affect the market price of securities.
Question:
What is "clearing" in the context of Bursa Malaysia Securities Clearing Sdn Bhd?
Answer:
The process of reconciling purchase and sale transactions to ensure accurate settlement.
Question:
Describe the "Lodge and Launch Framework."
Answer:
A framework for the offering of unlisted capital market products with reduced regulatory burdens.
Question:
What is "suspicious transaction reporting"?
Answer:
Reporting transactions that appear unusual or suspicious to authorities for further investigation.
Question:
State the main objective of the LEAP Market.
Answer:
To provide SMEs and smaller companies access to capital markets.
Question:
What are "participating organisations" in Bursa Malaysia?
Answer:
Brokers and dealers authorized to trade on the Bursa Malaysia exchange.
Question:
What does "continuous disclosure" mean for listed companies?
Answer:
The obligation to disclose material information promptly to the market.
Question:
Explain the term "capital market intermediary."
Answer:
Firms or individuals licensed to conduct activities such as brokerage, advisory, and fund management.
Question:
What is "trading halt" and when can it be imposed?
Answer:
A temporary suspension of trading, imposed during significant announcements or market disruptions.
Question:
What is the significance of the "Main Market Listing Requirements"?
Answer:
To ensure that listed companies meet minimum standards of financial performance and governance.
Question:
Describe the concept of "short selling" in the securities market.
Answer:
Selling securities that the seller does not own, typically borrowed, with the intention to buy back later at a lower price.
Question:
What is the "public shareholding spread requirement" for the Main Market?
Answer:
A minimum percentage of a company's shares must be held by public shareholders to ensure liquidity.
