Listed issuers with inadequate level of operations

8.13

Is there any difference in the obligations of an affected listed issuer1 under the previous framework set out in Practice Note 17 and the new framework in paragraph 8.03A of the Main LR?

Under the new framework in paragraph 8.03A of the Main LR, generally the obligations of the affected listed issuer remain the same as that of a PN17 Issuer including the requirement to submit and implement a regularisation plan within the prescribed timeframe. However, taking into consideration that there are differences between these listed issuers (an affected listed issuer vis-a-vis a PN17 Issuer), under the new framework -
​(a)an affected listed issuer will not be tagged or classified as a “PN17” Issuer;
(b)​if the affected listed issuer fails to regularise its condition, the Exchange has the discretion to suspend and delist its securities, whilst in the case of a PN17 Issuer, the suspension and delisting is automatic; and
(c)​there is an express provision in paragraph 8.03A for the affected listed issuer to apply not to undertake any regularisation plan if it is able to demonstrate to Bursa Securities’ satisfaction that its remaining business is viable, sustainable and has growth prospects with appropriate justifications, and its level of operations remains suitable for continued listing.

1       As stipulated in paragraph 8.03A(3) of the Main LR, an affected listed issuer refers to a listed issuer which has triggered the criteria of inadequate level of operations under paragraph 8.03(2) of the Main LR namely that the listed issuer has –

 

(a)   suspended or ceased all of its business or its major business; or

(b)   suspended or ceased its entire or major operations; or

(c)   an insignificant business or operations.