PN17 Business Trust

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8.25

ABC Trust is a PN17 Business Trust. As part of its proposal to regularize its condition, ABC Trust proposes to do the following:

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​​(a)​Scenario 1
​​​ABC Trust proposes to issue new securities via a rights issue as part of its regularization plan. Which regulator should ABC Trust submit its regularization plan to?
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​​​ABC Trust should submit its regularisation plan to Bursa Securities for approval pursuant to paragraph 8.04(3)(a)(i)(bb) of the Main LR as it involves only a rights issue.
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​(b)​​Scenario 2 
​​​ABC Trust proposes to undertake a proposal which results in a significant change in the business direction or policy of ABC Trust together with a rights issue as part of its regularisation plan. Which regulator should ABC Trust submit its regularisation plan to?
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​​ABC Trust should submit its regularisation plan to SC for approval pursuant to paragraph 8.04(3)(a)(i)(aa) of the Main LR. So long as the regularisation plan involves a proposal which requires the SC’s approval, such regularisation plan must be submitted to the SC. Hence, in addition to the existing requirement for submission to the SC of a regularisation plan which will result in a significant change in the business direction or policy of the business trust, any regularisation plan which involves the new issue of units other than a rights issue, must also be submitted to the SC for approval
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Pursuant to paragraph 8.22(2) of the Main LR, an amendment, modification or variation is considered material if it can be reasonably expected to have a material effect on the decision of a holder of securities of the listed issuer in relation to such proposal.