SECURITY COMMISSION

The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was
established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation
and development of capital markets. The SC has direct responsibility for supervising and monitoring the
activities of market institutions, including the exchanges and clearing houses, and regulating all persons
licensed under the Capital Markets and Services Act 2007. The SCs many regulatory functions include:
Supervising exchanges, clearing houses and central depositories;
Registering authority for prospectuses of corporations other than unlisted recreational
clubs;
Approving authority for corporate bond issues;
Regulating all matters relating to securities and futures contracts;
Regulating the take-over and mergers of companies
Regulating all matters relating to unit trust schemes;
Licensing and supervising all licensed persons;
Encouraging self-regulation; and
Ensuring proper conduct of market institutions and licensed persons.
Underpinning all these functions is the SCs ultimate responsibility of protecting the investor. Apart from
discharging its regulatory functions, the SC is also obliged by statute to encourage and promote the
development of the securities and futures markets in Malaysia including the Islamic capital market
(ICM).

Since its inception, the ICM has been an important part of overall agenda of the SC. The SC has
undertaken effective steps towards providing the infrastructure for the development of the ICM. The
development of the Malaysian ICM was also spearheaded by the establishment of a Shariah Advisory
Council (SAC). The SAC was given the mandate to ensure that the implementation of the ICM complied
with Shariah principles. Its scope of jurisdiction is to advise the SC on all matters related to the
comprehensive development of the ICM and to function as a reference centre for all ICM issues.

Over the years, the SC has built a comprehensive and facilitative framework for Islamic funds, wealth
management, as well as other ICM products. In addition, the SC has been driving product innovation in
the Islamic equity and sukuk sectors; on top of promoting education training consultancy and research
for the ICM. The Malaysian ICM today has the full complement of products, infrastructures, institutions,
intermediaries and investors contributing to greater depth and breadth of the entire capital market.




The Commission shall have the following functions:
(a) to advise the Minister on all matters relating to securities and futures industries;

(b) to regulate all matters relating to securities and futures contracts;

(c) to ensure that the provisions of the securities laws are complied with;

(d) to regulate the take-overs and mergers of companies;

(e) to regulate all matters relating to unit trust schemes;

(f) to be responsible for supervising and monitoring the activities of any exchange holding
company, exchange, clearing house and central depository;
[Am. Act A1217:s.6]
(g) to take all reasonable measures to maintain the confidence of investors in the securities and
futures markets by ensuring adequate protection for such investors;

(h) to promote and encourage proper conduct amongst participating organisations, participants,
affiliates, depository participants and all licensed or registered persons of an exchange, clearing
house and central depository, as the case may be;
[Subs. Act A1217:s.6]
(i) to suppress illegal, dishonourable and improper practices in dealings in securities and trading
in futures contracts, and the provision of investment advice or other services relating to
securities or futures contracts;

(j) to consider and make recommendations for the reform of the law relating to securities and
futures contracts;

(k) to encourage and promote the development of securities and futures markets in Malaysia
including research and training in connection thereto;

(l) to encourage and promote self-regulation by professional associations or market bodies in the
securities and futures industries;

(m) to license and supervise all licensed persons as may be provided for under any securities
law;

(n) to promote and maintain the integrity of all licensed persons in the securities and futures
industries.
(2) [Repealed by Act A987:s.2]

(3) The Commission shall have the functions and powers conferred upon it by or under the securities
laws.

(4) Nothing in paragraph (1)(l) shall limit or otherwise affect the functions of the Commission.
[Subs. Act A926:s.5]

(5) For the purposes of this section, "depository participants" means persons to whom section 9 of the
Securities Industry (Central Depositories) Act 1991 apply.
These
regulations may be cited as the Securities Commission (Shelf
Registration Scheme for Debentures) Regulations 2000.
(2)
These Regulations shall come into op
eration on 1 July 2000