Further to my earlier article on bonus issue, reported in The Star:
 
“ Bursa Malaysia Securities Bhd (Bursa Securities) has announced that public listed companies (PLCs) whose accumulated losses exceed their reserves are not allowed to undertake bonus issues “. 

Salient points extracted:

• In a statement announcing amendments to its listing requirements and Mesdaq market listing requirements in relation to bonus issues.

• Public listed companies were disallowed from undertaking bonus issues “if their accumulated losses exceed the reserves to be capitalised for the bonus issue”. 

• It said the amendments were made as part of Bursa Securities’ continuous efforts to enhance investor protection under its regulatory framework and listing requirements. 

• The amendments will take effect immediately for all applications for listing of securities arising from bonus issues submitted to Bursa Securities on or after yesterday. 

• The complete text of the amendments is available for reference along with a set of frequently asked questions and answers on Bursa Malaysia’s website at www.bursamalaysia.com 

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