What is the Capital Market?
Channel the wealth of suppliers such as retail institutional investors to demanders of capital who can put it to long-term productive use, such as businesses or governments.
Securities debentures, stocks, shares or bonds
Derivatives Commodity Derivatives, Equity Derivatives and Financial Derivatives
A Private Retirement Scheme
A unit trust scheme
Any product or arrangement which is based on securities or derivatives, or any combination thereof
Any other product which the Minister may prescribe as a capital market product
Capital markets participants include individual investors, institutional investors such as pension funds and mutual funds, governments, companies, organizations and financial institutions.
Financial and capital market regulators oversee the capital markets in their jurisdictions to protect investors.
The SC’s many regulatory functions include:
- Supervising exchanges, clearing houses and central depositories;
- Acting as the authority for prospectuses of corporations other than unlisted recreational clubs;
- Acting as the approving authority for corporate bond issues;
- Regulating all matters relating to securities and derivatives 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;
- Ensuring proper conduct of market institutions and licensed persons.
- Underpinning all these functions is the SC’s 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 derivatives markets in Malaysia.
Malaysian Capital Market Institutional Framework
Capital Market Institutions
Bursa Malaysia Berhad (Bursa)
Bursa operates a fully-integrated exchange, offering the complete range of exchange-related services including trading, clearing, settlement and depository services.
Federation of Investment Managers Malaysia (FIMM)
FIMM regulate its members, namely Unit Trust Consultants and Private Retirement Scheme Consultants to protect investor’s rights through the establishment of rules that promotes ethics and integrity.
Private Pension Administrator (PPA)
PPA is the central administrator for the Private Retirement Schemes (PRS).
Securities Industry Dispute Resolution Center (SIDREC)
An alternative dispute resolution body for the settlement of disputes between investors and capital market intermediaries who are its members.