Bursa starts GLP incentive on top 30 listed firms

By BERNAMA / Pic By ISMAIL CHE RUS

Bursa Malaysia Bhd has implemented the Green Lane Policy (GLP) incentive on the top 30 companies listed on the local bourse, based on their good standard of corporate governance conduct and disclosure
practices.

By granting certain privileges to these listed companies, including faster issuance of circulars to shareholders, the GLP is aimed at recognising and rewarding them by facilitating a more efficient time-to-market for their corporate proposals.

Under the GLP, the exchange would no longer pre-vet circulars issued by these listed companies except for those involving more complex proposals such as major disposal or privatisation, related party transactions, and transactions which involve mineral, oil and gas assets (complex circulars), it said in a statement.

“This means that the listed companies may issue such circulars to their shareholders as soon as they are ready without having to wait for the exchange to review the same,” Bursa Malaysia said, adding that it would also fast-track the processing of complex circulars submitted by these listed companies.

For the initial phase of the GLP, the exchange had selected and identified eligible listed companies from the constituents of the FTSE Bursa Malaysia KLCI, after considering — among others — the corporate governance-related conduct of the listed companies and their board of directors, it said.

“The list of eligible listed companies will be reviewed from time to time to ensure their continued eligibility to be on the list,” it added.

Moving forward, Bursa Malaysia said it would undertake a post-implementation review of the effectiveness of the GLP.

The exchange said it may expand the eligibility criteria to allow a broader pool of listed companies, with the necessary measures and controls to ensure that it continued to be facilitative of listed companies’ needs without compromising regulatory objectives.