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REGULATORY BODIES IN MALAYSIA, Bank Negara Malaysia (BNM), Securities…
REGULATORY BODIES IN
MALAYSIA
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Bank Negara Malaysia (BNM)
Missions
• BNM is the
controller
and
supervisor
of the institutions
under the Malaysian banking system.
The
Bank reports to the Minister of Finance
, Malaysia and keeps the Minister informed of matters pertaining to
monetary and financial sector policies.
Purpose
i) to manage
money
and
credit
or
ii) to
control the monetary system
of the country
Objectives
To
influence the credit situation
to the advantage of the country.
To be responsible for the supervision, regulation and development of the
insurance industry
.
To promote
monetary stability
and a sound financial structure.
To be directly responsible to the government on
exchange control matters
, administers the Exchange Control Act 1953 (amended 1989)
To act as a
banker and financial advisor/agent
to the government.
To
issue currency and keep reserves
safeguarding the value of the currency.
Functions
Banker to the banks
Keeper of the international reserves and
safeguarding the value of Ringgit
Financial advisor to the government
Agent responsible for monetary policy
and management of the financial system
Banker for currency issue
Securities Commission (SC)
To promote and maintain fair, efficient,secure and transparent securities and futures markets and to facilitate the orderly development of an innovative and competitive capital market
Objectives
SC’s ultimate responsibility of
protecting the investors.
To encourage and promote the
development of the securities and derivatives markets in
Malaysia.
Regulatory Philosophy
The Securities Commission Malaysia (SC) is a regulatory
body mandated by Parliament to develop and regulate the
Malaysian capital market.
As the regulator, the SC is involved in the rule-making, authorisation, supervision and enforcement aspects of the
capital market, playing a crucial role in ensuring a robust framework that continues to facilitate growth for the
country’s economic prosperity.
Functions
Regulating all matters relating to securities and derivatives
contracts;
Regulating the take-over and mergers of companies
Approving authority for corporate bond issues
Regulating all matters relating to unit trust schemes;
Registering authority for prospectuses of corporations other than
unlisted recreational clubs;
Licensing and supervising all licensed persons;
Supervising exchanges, clearing houses and central
depositories;
Encouraging self-regulation
Ensuring proper conduct of market institutions and licensed
persons.
Bursa Malaysia Securities Berhad (BMSB)
Objectives
Provide and maintain a financial
market place for the trading of
shares for listed companies
Responsible to observe
the market place and
for the enforcement of
its listing requirements
Functions
Provide information on security price
and volume of transaction
Provide mechanism for
raising funds by companies through
issuing rights,warrants and loan stocks.
Provide a mechanism for
determining the price of securities
Provide a mechanism for listing new securities
Provide a market place for the transaction of securities
Mission