Capital Markets and Services Act 2007 (Act 671), Regulations & Malaysian Code on Take-Overs and Mergers [As at 1st February 2022]

The Capital Markets and Services Act 2007 (Act 671) is a law in Malaysia that regulates the country's capital market, including the issuance and trading of securities, the conduct of market participants, and the regulation of market intermediaries. The Act also established the Securities Commission Malaysia as the primary regulator of the capital markets.

The Act is accompanied by several regulations, including the following:

1. Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019: This regulation prescribes digital currencies and digital tokens as securities under the Act, subjecting them to the regulatory requirements of the Act and its related regulations.

2. Capital Markets and Services (Prescription of Securities) (Collective Investment Schemes) Order 2001: This regulation prescribes collective investment schemes as securities under the Act, subjecting them to the regulatory requirements of the Act and its related regulations.

3. Capital Markets and Services (Prescription of Securities) (Real Estate Investment Trusts) Regulations 2019: This regulation prescribes real estate investment trusts as securities under the Act, subjecting them to the regulatory requirements of the Act and its related regulations.

The Malaysian Code on Take-Overs and Mergers is a set of guidelines issued by the Securities Commission Malaysia to regulate the conduct of takeovers and mergers involving companies listed on Bursa Malaysia. The code aims to ensure that all shareholders are treated fairly and equally in the event of a takeover or merger.

The Code contains provisions that require companies to disclose all material information to their shareholders, ensure that shareholders have sufficient time to consider a takeover or merger proposal, and provide for an independent advisor to assess the fairness of the offer.

The Code also contains provisions that regulate the conduct of bidders and target companies during the takeover or merger process, including restrictions on the acquisition of shares in the target company and the use of insider information.

Overall, the Capital Markets and Services Act 2007 and its related regulations, as well as the Malaysian Code on Take-Overs and Mergers, aim to ensure the integrity, transparency, and stability of Malaysia's capital market, and to protect the interests of investors and other stakeholders.