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[ACE LR] GUIDANCE NOTE 12 - REQUESTS FOR SUSPENSION​

[ As at 3 August 2009 ] 

​BURSA MALAYSIA SECURITIES BERHAD 
GUIDANCE NOTE 12​
REQUESTS FOR SUSPENSION​
​​

 

​DetailsCross References
​Effective date:3 July 2006Rule 16.03
​Revision date:3 August 2009

 

​1.0Introduction
​1.1Suspension in the trading of securities (“suspension”) may be effected under any of the circumstances set out in Rules 16.02 and 16.03 of the Listing Requirements.
​1.2Suspensions may be effected at the request of the listed corporation or imposed by the Exchange independently of any such request subject to the relevant requirements set out in this Guidance Note.
​1.3This Guidance Note clarifies the operational procedures in respect of a request for suspension made by listed corporations. 
​2.0Form and information for a request for suspension
​2.1Any request for suspension must be made in writing and in the form of Annexure GN12-A. In the addition, a listed corporation must provide to the Exchange any other information as may be requested by the Exchange. 
​2.2The request for suspension must be signed by a member of the listed corporation’s senior management such as the company secretary, managing director or chief executive who is duly empowered to do so by the board of directors of the listed corporation.
​2.3The Exchange will only consider a request for suspension where the information requested pursuant to paragraph 2.1 above has been fully and completely provided.  
3.0​​Situations which may warrant suspension
​3.1The Exchange may approve a listed corporation’s request for suspension where -
​(a)the listed corporation requires time to prepare and release an announcement relating to a material transaction, such as -
​(i)​a very substantial  transaction as defined in Chapter 10 of the Listing Requirements;
​(ii)a significant change in the business direction or policy of a listed corporation; or
​(iii)any other corporate exercise which the Exchange considers to be material;
​(b)​ ​​where the listed corporation intends to -
​(i)make a material announcement, including one that falls within paragraph 3.2 below (“Very Material Announcement”); or
​(ii)hold a press conference to make a Very Material Announcement,
​ ​before the close of trading; or
​(c)​ ​any other reason which, in the opinion of the Exchange, justifies a suspension.
​3.2Without limiting the above, an announcement relating to any of the following matters will be regarded as a Very Material Announcement -
​(a)an interim financial report;
​(b)a bonus issue or fund raising exercise;
​(c)a transaction as defined under Rule 10.02(j) of the Listing Requirements, where the percentage ratio calculated in accordance with Chapter 10 of the Listing Requirements is 25% or more​;
​(d)​a notice of take-over being served on a listed corporation which the public has no prior knowledge of; or
​(e)​any other corporate exercise.
​3.3A listed corporation should not request for a suspension if it relates to a corporate exercise where the facts are still in a state of flux and no disclosure can yet be made. 
4.0Suspension period and announcement timeframe
​4.1If the Exchange grants a suspension for any of the reasons stated in paragraph 3.1 above, the period of suspension that may be approved by the Exchange is -
​(a)​​​up to 3 market days only where the reason for suspension falls within the ambit of paragraph 3.1(a); 
​(b)up to 1 market day only where the reason for suspension falls within the ambit of paragraph 3.1(b); and
​(c)such other period as deemed appropriate by the Exchange where the reason for suspension falls within the ambit of paragraph 3.1(c).
​4.2​​ ​For the purposes of computation of the period of suspension -
​(a)if a suspension is effected at 9.00 a.m., the day the suspension is effected will be counted as 1 market day; or
​(b)if a suspension is effected after 9.00 a.m., the day suspension is effected will not be counted as 1 market day of suspension.
​5.0​​ ​Announcements
​5.1If a suspension is granted by the Exchange under paragraph 3.1(a), the listed corporation must announce the relevant information to the Exchange on or before the expiry of the period of suspension that is approved by the Exchange pursuant to paragraph 4.1 above.
​5.2If a suspension is granted by the Exchange under paragraph 3.1(b), the listed corporation must announce the relevant information to the Exchange on the day suspension is requested to take effect.
​5.3If a suspension is granted by the Exchange under paragraph 3.1(c), the listed corporation must announce the relevant information to the Exchange on such date as may be specified by the Exchange. 
​6.0Suspension
​6.1A listed corporation should submit its request for suspension at least 1 hour before the time suspension is requested to commence. For the purpose of this paragraph, the “1 hour” means any 1 hour between 9 a.m. to 1 p.m. and 2 p.m. to 5.30 p.m.
​6.2Where the Exchange decides to allow a suspension, such suspension will be imposed immediately upon the decision being made, even if it may be before the date or time suspension is requested to commence.  
​6.3If the Exchange considers that the reasons given in support of a request for suspension do not warrant a suspension -
​(a)t​he Exchange will inform the listed corporation; and 
​(b)​​the Exchange may at its discretion, require a listed corporation to  announce sufficient information to enable an investor to make an informed decision, as soon as practicable or within a time prescribed by the Exchange, which in any event will not be longer than 1 market day from notification.
​7.0​ ​​Illustration
​7.1The following are illustrations of the application of paragraphs 6.1 and 6.2:
​(a)If A Bhd intends to have its securities suspended at 9.00 a.m. on Monday, it should submit its request for suspension by 4.30 p.m. on the previous Friday​.
​(b)Where the submission is made on Friday and the Exchange decides on Friday to allow the suspension, suspension will be effected immediately on Friday itself (if at that time, the trading session has not yet ended).
​(c)However, pursuant to paragraph 4.2(b), the Exchange will not take into account the suspension effected on Friday when computing the period of suspension.
​ ​
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Annexure GN12-A.pdf