Bursa Malaysia Berhad has expanded its criteria for Approved Securities by reducing the daily market capitalization requirement from RM500 million ($108.2mn) to RM200 million. Approved Securities are securities that have met certain criteria and may be used for purposes of Securities Borrowing and Lending, and short selling.
“By broadening access and choice for investors, we are solidifying our commitment to improving market efficiency,” said Datuk Muhamad Umar Swift, chief executive officer of Bursa Malaysia, in a statement. “As a maturing market, it is vital that we offer a marketplace with robust facilities to cater to the differing needs of investors, while remaining focused on ensuring a vibrant, fair and orderly market.”
When updating the list of Approved Securities, careful selection is made based on both quantitative and qualitative criteria to ensure there is sufficient liquidity, and the integrity of the market is maintained.