KUALA LUMPUR, Nov 6 -- Amendments to listing requirements, revision of circuit breaker, enhancement of initial public offering (IPO) framework, and cooperation with international exchanges are among the steps taken to enhance liquidity and efficiency in the capital market.

In its Economic Outlook 2021 report released today, the Ministry of Finance (MoF) said the measures were undertaken in the first eight months of 2020, aimed at boosting the capital market performance.

"Key capital market measures that were introduced included amendments to the Main Market and ACE Market listing requirements, which provide securities holders with the option to subscribe for rights shares, exercise convertible securities and participate in Dividend Reinvestment Scheme electronically," it said.

Apart from that, amendments to the listing requirements in relation to new issues of securities and other areas were introduced and aimed at enhancing disclosure requirement in connection with the new issue of securities and addressing gaps for greater shareholder protection and confidence.

The ministry said the authority has also enhanced the IPO framework for the Main Market which would promote greater shared responsibility among key stakeholders involved in the IPO submission for listing on the Main Market.

Simultaneously, the MoF said memoranda of understanding have been signed between Bursa Malaysia Bhd and the Shenzhen Stock Exchange and Taiwan Futures Exchange (TAIFEX) to broaden opportunities in investment and facilitates cross-border collaboration.

"These include the display of mutual benchmark indices in the respective markets and joint promotion of the indices and its constituents.

“As for collaboration with TAIFEX, it would promote a mutually beneficial business partnership between both parties,” it said, adding that this entailed information sharing, exchanging best practices about products and market development, and exploring common areas of interest.

On the temporary revisions to static and dynamic price limits and the circuit breaker, the ministry said they were introduced to add stability and enhance confidence in the marketplace with revised market management and control mechanisms.

 -- BERNAMA