Bursa entitled to exercise power, it says on Serba Dinamik’s legal action

By PRIYA VASU / Pic by TMR GRAPHIC

Bursa Malaysia Securities is entitled to exercise its power pursuant to the listing requirements in the interest of maintaining an orderly and fair market, said Bursa following Serba Dinamik Holdings Bhd’s lawsuit on the exchange.

Bursa said, timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. 

“This is paramount to enable Bursa Securities to discharge its statutory duty.

With regard to the abovementioned legal proceeding, Bursa Securities has engaged a legal counsel to advise on this matter and the next course of action. 

“Bursa Securities will be defending its position vigorously and will not abdicate its statutory roles and functions in the marketplace,” the exchange platform said in a statement today.

Serba Dinamik has filed an originating summons (OS) yesterday at the High Court against Bursa Securities Sdn Bhd to challenge the regulator on the requirement of special independent review (SIR) arguing that Bursa have acted in excess of power.

The oil and gas (O&G) company, which filed a lawsuit against its former auditor KPMG Ltd over the audit disputes, argued that Bursa has no authority to direct the company to make announcements about material that is unlikely to comply with Paragraphs 9.03 and 9.35A of Main Market Listing Requirement and any “Factual Findings Update” (FFU) that may or may not be used by its auditor to form an audit opinion at the end of the audit of the company’s financial statements. 

In addition, Serba Dinamik is also seeking damages against Bursa.

The application for interim injunctive relief is fixed for hearing on Nov 11 and the case management for the OS has been fixed on Nov 17.

The suspension on the trading in Serba Dinamik’s shares remains in effect as the company has not complied with Bursa’s directive to make an announcement on the findings from the SIR.

Serba Dinamik has not complied with the directive to make an announcement on the findings from the FFU on the SIR by Oct 26, 2021.