Bursa Malaysia Bhd has issued new listing requirements (LR) and various amended rules for the Leading Entrepreneur Accelerator Platform (LEAP) Market, aimed to provide small and medium enterprises (SMEs) with fundraising access and visibility through the capital market.
“This marks a significant milestone for Bursa Malaysia. The LEAP Market complements both the Main Market and ACE Market by addressing the funding gap faced by the SMEs.
“It also enhances the existing SME funding eco-system and addresses the over-dependency of these SMEs on financial institutions by providing them access to the capital market,” CEO Datuk Seri Tajuddin Atan said in a statement yesterday.
He said 96% of the SME funding currently comes from the banking sector and less than 4% comes from the capital market.
As the national exchange, Bursa Malaysia believes it could play a greater developmental role to facilitate fundraising for the growth of the SMEs, he said.
Trading on the LEAP Market is limited to qualified investors, mainly those who fall within Part I of Schedule 6 or 7 of the Capital Markets and Services Act 2007, according them with an opportunity to broaden their investment options in SMEs in a transparent and regulated environment.
In finalising the rules for the LEAP Market, the exchange considered all industry and market views received from two public consultations and various focus group meetings conducted in September and November 2016 respectively.
The new rules are premised on three key underlying principles, namely cost efficiency, balanced and proportionate regulation, and a qualified market for sophisticated investors.
The listing framework governing the LEAP Market as set out under the LEAP LR includes promoting a simple and easy listing regime and facilitating an efficient fundraising platform for initial listings and secondary fundraising with short time to market.
The new LEAP LR and amended rules have been approved by the Securities Commission Malaysia and will take effect today. — Bernama