244 Functions of SC

Functions of SC

There are two main fundamental functions of SC in the Malaysian capital market.

These are:

1. To promote and develop the securities market.

2. To ensure integrity of the market.


SC’s regulatory functions include:

1. Supervising exchanges, clearing houses and central depositories.

2. Registering authority for prospectuses of corporations other than unlisted recreational clubs.

3. Approving authority for corporate bond issues.

4. Regulating all matters relating to securities and futures contracts.

5. Regulating the take-over and mergers of companies.

6. Regulating all matters relating to unit trust schemes.

7. Licensing and supervising all licensed persons.

8. Encouraging self-regulation.

9. Ensuring proper conduct of market institutions and licensed persons.


Underpinning all these functions is SC’s ultimate responsibility of protecting the investor. Apart from discharging its regulatory functions, the SC is also obliged by statute to encourage and promote the development of the securities and future market in Malaysia.

With the establishment of the Audit Oversight Board (AOB) in 1 April, 2010 which was incorporated into the Securities Commission Act 1993 by virtue of the Securities Commission Amendment Act 2010, the AOB now assists the SC in overseeing the auditors of public interest entities and protects their interests by promoting confidence in terms of quality and reliability of audited financial statements of public interest entities.

The SC is also a member of the International Organization of Securities Commission (IOSCO), an international body that brings together regulators of the world’s principal stock exchanges.

The SC has a board made up of seven members appointed by the Minister of Finance, which includes the Chairman who runs the Commission. There are two managing directors who report to the Chairperson of the Commission.



BCS 202/05 Corporate Compliance Management Copyright © 2011 by Wawasan Open University. All Rights Reserved.


Comments are closed.