KUALA LUMPUR (Aug 10): Bursa Malaysia Securities Bhd, which has since the start of this year become the sole approving authority for initial public offerings on the ACE Market, is seeking public feedback on its proposed amendments to the ACE Market Listing Requirements to facilitate the transfer of eligible listings from the LEAP Market to the ACE Market.

Besides discussions on these amendments under what it calls the Proposed LEAP Market Transfer Framework, it also wants to gather opinions on its Proposed Recognised Approved Adviser Framework, said the exchange regulator in a statement on Wednesday (Aug 10).

"Since the launch of the LEAP Market in July 2017, the exchange has observed how most of the LEAP Market listed corporations have, with the funds raised through their listings on the LEAP Market, grown in terms of size and profitability.

"In this regard, the exchange proposes to formalise the LEAP Market Transfer Framework to facilitate the transfer of eligible listed corporations from the LEAP Market, which is a qualified market accessible to only sophisticated investors, to the ACE Market, which offers a more robust listing environment and is open to the public," said Bursa.

According to Bursa, the Proposed LEAP Market Transfer Framework is underpinned by two regulatory principles: i) there is no regulatory arbitrage on the standards and quality of corporations listed on the ACE Market; and ii) there will be adequate disclosure of the business, financial condition, management and other matters pertaining to the transfer applicant for informed investment decision making by investors.

Bursa said any LEAP Market listed entity seeking a transfer of listing must meet the suitability assessment by a sponsor under the ACE Market listing rules, has been listed for at least two years on the LEAP Market, and completed its business plan and fully used the proceeds raised from its LEAP listing.

It must also comply with existing requirements and procedures for admission to the ACE Market, and put in place a clear price discovery mechanism for its shares to be transferred.

And its application for the transfer of its listing to the ACE Market and withdrawal of its listing from the LEAP Market must be done concurrently.

Meanwhile, Bursa said it is introducing the Proposed Recognised Approved Adviser Framework to allow an approved adviser from the LEAP Market, on meeting certain criteria, to serve as a replacement sponsor after the first full financial year of a listed entity's admission to the ACE Market.

"It is aimed at propelling capacity building among the professionals in the corporate finance fraternity," it said.

"As a replacement Sponsor, the role of the Recognised Approved Adviser will be limited to guiding the ACE Market listed corporation and its directors on their post-listing obligations, as well as ensuring their compliance with the ACE Market [Listing Requirements] and other applicable laws," it said.

Check Bursa's website here for the full details of the consultation paper and proposed amendments. Comments and feedback should be submitted by Sept 21.