Act 671
Capital Markets and Services Act 2007
Akta pasaran modal dan perkhidmatan 2007
An Act to consolidate the Securities Industry Act 1983 [Act 280] and Futures Industry Act 1993 [Act 499], to regulate and to provide for matters relating to the activities, markets and intermediaries in the capital markets, and for matters consequential and incidental thereto.
Data synced
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Part I β Preliminary
s 1Short title, commencement and applications 2Interpretations 3Associated persons 4Interest in securitiess 5Prescription of securities and futures contractss 6Consequences of agreements becoming futures contractsPart II β Securities and futures markets
Division 1 β Markets
s 7Establishment of stock markets or futures marketsDivision 2 β Market institutions
s 8Power of Minister to approve stock exchange or futures exchanges 9Commission to approve amendment to rules of stock exchange, futures exchange or approved clearing houses 10Appointment of directors of exchange holding company, stock exchange and futures exchanges 11Duties of exchanges 12Withdrawal of approval of exchanges 13Effect of withdrawal of approval of an exchanges 14Exchange holding companys 15Power of Minister to approve exchange holding companys 16Annual Regulatory Report on compliance with ongoing requirementss 17Special report by exchange holding company about compliance with ongoing requirementss 18Withdrawal of approval of exchange holding companys 19Effect of withdrawal of approval of exchange holding companys 20Listing of exchange holding company on stock exchanges 21Duties of exchange holding companys 22Risk Management Committee of exchange holding companys 23Restriction on exchange holding company from reducing its shareholdings 24Disposal and acquisition of assets, etc.s 25Control in shareholding of exchange holding companys 26Power to issue directionss 27Closure of stock exchange or futures exchanges 28Power of Commission in respect of stock exchange or futures exchanges 29Provision of assistance to Commissions 30Suspension order relating to stock exchange, futures exchange, approved clearing house or central depositorys 31Power of Commission upon contravention of section 23, 24 or 25s 32Publication of notice of suspension of trading or closures 33Rights of stock exchange, futures exchange or approved clearing house not to be affected by laws relating to contractss 34Registered electronic facilitiess 35Application for registrations 36Withdrawal of registrations 37Establishing or operating a clearing facilitys 38Power of Commission to approve clearing houses 39Withdrawal of approvals 40Effect of withdrawal of approvals 41Interpretations 42Default ruless 43Default proceedings of approved clearing house to take precedence over law of insolvencys 44Supplementary provisions as to default proceedingss 45Duty to report on completion of default proceedingss 46Net sum payable on completion of default proceedingss 47Disclaimer of property, rescission of contracts, etc.s 48Adjustment to prior transactionss 49Right of relevant office-holder to recover certain amounts arising from certain transactionss 50Law of insolvency in other jurisdictionss 51Participant to be a party to certain transactions as principals 52Securities or futures contracts delivered to an approved clearing houses 53Securities transfers in settlements 54Purchase and sale of securitiess 55Immunitys 56Preservation of rights, etc.s 57Exemption from regulations on reporting of substantial shareholding and Division 3A of the Companies Act 1965Part III β Capital markets services
Division 1 β Licensing and regulation
s 58Requirement for Capital Markets Services Licences 59Requirement for Capital Markets Services Representativeβs Licences 60Application for grant or renewal of licences 61Grant or renewal of licences 62Power of Commission to impose conditions or restrictions on licencess 63Licence fees 64Grounds for refusal for the grant or renewal of Capital Markets Services Licences 65Grounds for refusal for the grant or renewal of Capital Markets Services Representativeβs Licences 66Power of Commission to enquire into transactions in respect of securities and futures contractss 67Minimum financial requirementss 68Period of licences 69Variation of licences 70Deposit to be lodged in respect of Capital Markets Services Licences 71False statements in relation to application for grant, renewal or variation of licences 72Revocation and suspension of licences 73Effect of revocation, suspension or expiry of licence, etc.s 74Notification of disqualifying events 75Appointment, election and nomination of directors and chief executive of licensed person, etc.s 76Registered personss 77Register of licence holderss 78Notification of change of particularss 79Publication of names and addressess 80Appealss 81Surrender of licenceDivision 2 β Records
s 82Application of this Divisions 83Register of securitiess 84Notice of particulars to Commissions 85Defence to a prosecutions 86Production of registers 87Particulars of financial journalistss 88Commission may supply copy of the extract of a registerDivision 3 β Conduct of business
s 89Certain representation prohibiteds 90Issue of contract notess 91Disclosure of certain interests in securitiess 92Recommendations by licensed persons 93Priority given to clientβs orders 94Dealings by employees of holders of licences or participating organizationss 95Duty to furnish Commission with such returns and information as Commission requiress 96Additional obligations on licensed personss 97Dealings as principals 98Shortsellings 99Trading in futures contracts on own accounts 100Documents to be given to prospective clientss 101Trading limits in futures contractss 102Reportable positionss 103Futures contract not gaming or wagering contracts 104Sequence of sending and carrying out of orderss 105Trading in futures contracts outside Malaysias 106Amounts to be paid for trading in Specified Exchangess 107Failure to comply with sections 99, 100, 101, 102 and 104Division 4 β Books, clientβs assets protection and audit
s 108Keeping of books and furnishing of returnss 109Application of this Subdivisions 110Interpretations 111Certain monies received by holder of Capital Markets Services Licence to be paid into trust accounts 112Clientβs assets other than monies received by holder of Capital Markets Services Licences 113Withdrawal of monies from trust accounts 114Holder of Capital Markets Services Licence to supply copies of entries in bookss 115Claims and liens not affecteds 116Application of this Subdivisions 117Interpretations 118Segregation of clientβs assetss 119Monies in segregated account not available for payment of debt, etc.s 120Application of this Subdivisions 121Interpretations 122Operation of trust accounts 123Clientβs assetss 124Right to copies of book entries, inspection of contract notes, etc.s 125Commissionβs actions to protect clientβs assets, etc.s 126Appointment of auditors 127Relevant person to lodge auditorβs reports 128Duties of auditors 129Duty of relevant person or its directors or officers to furnish informations 130Power of Commission to appoint independent auditor, etc.s 131Power of Commission to appoint independent auditor, etc., upon applications 132Independent auditor, etc., to report to Commissions 133Powers of independent auditor appointed by Commissions 134Prohibition against communication of certain matters by independent auditors, etc., and employeess 135Books, accounts and records to be produced upon demands 136Penalty for destroying, concealing or altering books or sending books or property out of Malaysias 137Rights of exchange to impose obligationsDivision 5 β Vesting
s 138Interpretations 139Application to court to facilitate agreement or arrangement for transfer of the whole or part of business of licensed personPart IV β Compensation fund and fidelity fund
Division 1 β Compensation fund
s 140Interpretations 141Establishment of compensation funds 142Monies constituting compensation funds 143Compensation fund to be kept in separate accounts 144Payments out of compensation funds 145Accounts of compensation funds 146Requirement of relevant stock exchange to pay portion of net income into compensation funds 147Contribution to compensation funds 148Provision where compensation fund exceeds fifty million ringgits 149Levy in addition to annual contributionss 150Power of relevant stock exchange to make advances to compensation funds 151Investment of monies in compensation funds 152Application of compensation funds 153Power of relevant stock exchange to require production of documentss 154Subrogation of relevant stock exchange to rights and remedies of claimant upon payment from compensation funds 155Payment of claims only from compensation funds 156Power of relevant stock exchange to enter into contract of insurances 157Application of insurance moniess 158Monies in compensation fund upon winding up of relevant stock exchangeDivision 2 β Fidelity fund
s 159Establishment of fidelity funds 160Monies constituting fidelity funds 161Fidelity fund to be kept in separate accounts 162Payments out of fidelity funds 163Accounts of fidelity funds 164Contributions to fidelity funds 165Power of relevant futures exchange to make advances to fidelity funds 166Investment of monies in the fidelity funds 167Application of fidelity funds 168Power of relevant futures exchange to require production of documents and statementss 169Subrogation of relevant futures exchange to rights and remedies of claimant upon payment from fidelity funds 170Payment of claims only from fidelity funds 171Power of relevant futures exchange to enter into contract of insurances 172Application of insurance moniess 173Monies in fidelity fund upon winding up of relevant futures exchangePart V β Market misconduct and other prohibited conduct
s 174Application of this PartDivision 1 β Prohibited conduct β Securities
s 175False trading and market rigging transactions 176Stock market manipulationss 177False or misleading statements, etc.s 178Fraudulently inducing persons to deal in securitiess 179Use of manipulative and deceptive devicess 180Person or transaction to whom or which section 175 or 176 does not applys 181Dissemination of information about illegal transactionss 182Penalty for offence under Subdivision 1s 183Informations 184Information generally availables 185Material effect on price or value of securitiess 186Trading in securitiess 187Reference to βprocureβs 188Prohibited conduct of person in possession of inside informations 189Proof of contravention of section 188s 190Secrecy arrangements by corporations 191Secrecy agreements by partnershipss 192Underwriting and subunderwritings 193Non-application of section 188 to transactions carried out under schemes of arrangement, etc., under any written laws 194Exception for corporation with knowledge of its intentions 195Exception of knowledge of individualβs own intentions or activitiess 196Unsolicited transactions 197Exception for redemption of units of a unit trust scheme under buy-back covenants 198Parity of information defences 199Civil liability for contravention of section 175, 176, 177, 178, 179 or 181s 200Civil action by Commissions 201Recovery of loss or damagesDivision 2 β Prohibited conduct β Futures contracts
s 202False tradings 203Bucketings 204Dissemination of information about false tradings 205Manipulation of price of futures contract and cornerings 206Employment of devices, etc., to defrauds 207False or misleading statementss 208Prohibition of abuse of information obtained in official capacitys 209Penalties for offence under Subdivision 1s 210Civil liability for contravention of section 202, 203, 204, 205, 206, 207 or 208s 211Civil action by CommissionPart VI β Issues of securities and take-overs and mergers
Division 1 β Proposals in relation to securities
s 212Proposals to be submitted to Commissions 213Classes or categories of transactions or securities not subject to subsection 212(4)s 214False or misleading statements, etc.s 215Application monies to be paid into a trust account where no prospectus is requiredDivision 2 β Take-overs, mergers and compulsory acquisitions
s 216Interpretations 217Malaysian Code on Take-Overs and Mergerss 218Compliance with Code and rulingss 219Exemptionss 220Action by Commission in cases of non-compliance with Code and rulingss 221False or misleading documents, information, etc.s 222Compulsory acquisitions 223Right of minority shareholders 224Application to courts 225Non-application of section 180 of the Companies Act 1965Division 3 β Prospectus
s 226Interpretations 227Invitations 228Offer for subscription or purchases 229Excluded offers and invitationss 230Excluded issuess 231Exceptionss 232Requirement to register prospectus in relation to securitiess 233Registration of prospectuss 234Requirement to lodge prospectus with Registrars 235Contents of prospectuss 236General duty of disclosure in prospectuss 237Abridged prospectus for renounceable rights issuess 238Supplementary or replacement prospectuss 239Consequences of registering a supplementary or replacement prospectuss 240Regulations for shelf prospectuses, supplementary shelf prospectuses, short form prospectuses, profile statements, etc.s 241Restrictions in advertisings 242Document containing offer of securities for purchase deemed to be a prospectuss 243Allotment of securities where prospectus implies that application for permission to list on stock exchange had been mades 244Consent from person to issue of prospectus containing statement by hims 245Stop orders 246Criminal liability for false statements, etc., in prospectuss 247Persons not to be taken to have authorized or caused issue of prospectuss 248Right to recover for loss or damage resulting from false or misleading statement in prospectus, etc.s 249Civil liability for misleading or deceptive actss 250Due diligence defences 251Reliance on statement and information in respect of false or misleading statements 252Reliance on statement and information in respect of misleading or deceptive acts 253Reliance on public official statement in respect of false and misleading statements 254Defence of withdrawal of consents 255Restriction on offering securities for subscription or purchases 256Agreements to exclude or restrict liability voidDivision 4 β Debentures
s 257Application of this Divisions 258Requirement for trust deed and trustees 259Form and contents of trust deedss 260Persons who can be trusteess 261Existing trustee to continue to act until new trustee takes offices 262Replacement of trustees 263Duties of the borrowers 264Duty of borrower to replace trustees 265Duty of borrower to inform trustee about charge, etc.s 266Duty of borrower to give trustee and Commission quarterly reportss 267Duty of borrower to inform trustee and Commission of occurrence of material events 268Duty of borrower where prospectus states purpose or project for which monies are to be applieds 269Obligations of directors of borrower to deliver financial statementss 270Borrower to issue document evidencing indebtedness, etc.s 271Duties of guarantorss 272Obligations of directors of guarantor to deliver financial statementss 273Duties of trusteess 274Exemptions and indemnification of trustee from liabilitys 275Indemnity of trustees 276Duty of auditor to trustee for debenture holderss 277Duty of borrower to call a meetings 278Power of trustee to call a meetings 279Court may order a meeting of debenture holderss 280Powers of Commission to protect interests of debenture holderss 281General power of court to give directions and determine questionss 282Specific power of the courts 283Register of debenture holderss 284Specific performances 285Perpetual debenturess 286Reissue of redeemed debenturesDivision 5 β Unit trust schemes and prescribed investment schemes
s 287Interpretations 288Requirement for trustee and deeds 289Approval of trustee and management companys 290Persons who can be trusteess 291Existing trustee to continue to act until new trustee takes offices 292Replacement of trustees 293Registration of deeds 294Contents of deeds 295Modification of deed through supplementary deeds 296Deed to be lodged with Commissions 297Duties of a management companys 298Duty of management company to lodge returns, etc.s 299Duty of management company to replace trustees 300Duties of trustees 301Duty of trustee to wind up schemes 302Duties of management company and trustee under general laws 303Exemptions and indemnification of trustee from liabilitys 304Indemnity of trustees 305Duty of management company to call meeting of unit holderss 306Power of trustee to call a meetings 307Court may order a meeting of unit holderss 308Register of unit holderss 309Where register is to be kepts 310Closure and inspection of registers 311Power of court to rectify registers 312Branch registers 313Rights of trustee, executor, administrator in relation to a deceased unit holders 314Power of court to make orderss 315Non-application of Division 5 of Part VIDivision 6 β Islamic securities
s 316Prescription by Minister in respect of Islamic securities, etc.Part VII β Provisions applicable to listed corporations
s 317Duty of chief executive and directors of listed corporation to disclose interests in securitiess 318Disqualification of chief executive or director of listed corporationss 319Submission of informations 320Duties of auditor of listed corporationss 321Protection for persons against retaliation for reporting to authorities in specific circumstancesPart VIII β Self-regulatory organizations
s 322Interpretations 323Recognition of a self-regulatory organizations 324Duties of a recognized self-regulatory organizations 325Rules of a recognized self-regulatory organizations 326Appointment of directors of a recognized self-regulatory organizations 327Powers to issue directions to a recognized self-regulatory organizations 328Withdrawal of recognitions 329Protection for a recognized self-regulatory organizations 330Accounts and reports in respect of a recognized self-regulatory organizations 331Provision of assistance to CommissionPart IX β Capital market development fund
s 332Establishment of Capital Market Development Funds 333Assets constituting Funds 334Objects of the Fund, etc.s 335Membership of the Boards 336Tenure of offices 337Resignation and revocation of appointments 338Vacation of offices 339Quorum and procedures of meetingss 340Disclosure of interests 341Conservation of the Funds 342Financial years 343Accounts and audits 344Power of Minister in relation to the Boards 345Dissolution of the Funds 346Power to make regulationsPart X β Disclosure of information
Division 1 β Application
s 347Application of this PartDivision 2 β Disclosure of information
s 348Power of Commission to require production of bookss 349Offencess 350Power to specify form and manner of submissions 351Privilegess 352Disclosure to Commissions 353Disclosure of information relating to dealing in securities or trading in futures contractsPart XI β Administrative and civil actions
s 354Powers of Commission to take actions 355Power of Commission to take action against futures exchange, approved clearing house, etc., for failure to comply with rules, regulations, etc.s 356Powers concerning compliance with conditions of licence, etc., by licensed personss 357Civil liability of person in contravention of the securities lawss 358Commission may recover loss or damages 359Reference to conducts 360Power of court to make certain orderss 361Application for winding upPart XII β General
s 362Prohibition of use of certain titless 363Copy of book as prima facie evidences 364Application by aggrieved person for reviews 365Time for application for reviews 366Decision of Minister to be finals 367Offences by bodies of persons and by employees and agentss 368Falsification of recordss 369False reports to Commission, exchange or approved clearing houses 370Attempts, abetments and conspiraciess 371Destruction, concealment, mutilation and alteration of recordss 372General penaltys 373Compounding of offencess 374Convicted persons liable to pay compensations 375Conduct of prosecutions 376Indemnitys 377Guidelines and practice notes of Commissions 378Power to make regulationss 379Settlement of disputess 380Power to amend SchedulesPart XIII β Repeal, savings and transitional provisions
s 381Repeal of Securities Industry Act 1983 and Futures Industry Act 1993 and savings and transitional in respect thereofs 382Approved exchange holding companies, exchanges and approved clearing house deemed to have been approveds 383Electronic facility deemed registereds 384Savings in respect of licences issued under the repealed Actss 385Pending applications for licencess 386Transitional and savings in respect of corporate proposalss 387Transitional provisions in relation to certain registered personss 388Revocation of subsidiary legislations 389Modifications to construction of other written lawss 390Continuance of other rights, liabilities, etc., under the repealed Actss 391Prevention of anomaliess 392Persons dealing in securities in relation to unit trust schemes 393Transitional provisions for unlicensed unit trust management companiess 394Transitional provision for corporate finance executives and research analystsSchedule 1SCHEDULE 1Cite this legislation
- Official citation
- Act 671
- Source
- lom.agc.gov.my
- Data synced
- Licence
- Official text, free to reproduce (Copyright Act 1987 [Act 332] s 3) β
Capital Markets and Services Act 2007 [Act 671] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-671
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).