SC to unveil details to liberalise intraday short-selling activity

KUALA LUMPUR: The Securities Commission (SC) will unveil more details of an initiative to liberalise intraday short-selling activity in the coming weeks.

According to SC chairman Tan Sri Ranjit Ajit Singh, strong interest from traders is behind the plan to open intraday short-selling to all.

“We feel comfortable that there are sufficient safeguards in place to allow that to happen now, on the intraday short-selling basis,” Ranjit told a press briefing during the World Capital Markets Symposium 2018 (WCMS 2018) here.

He, however, stressed that the SC would still regulate the intraday short-selling activity.

The move to allow intraday short-selling to all investors was one of a slew of measures announced by Prime Minister Datuk Seri Najib Tun Razak to stimulate vibrancy of the local bourse.

In his keynote address at WCMS 2018, Najib announced that the stamp duty on the shares of midand small-cap companies in Malaysia would be temporarily abolished for three years from next month as a measure to promote the segment.

“To enhance better value recognition and vibrancy in this segment of the stock market, as well as to encourage greater investor participation, I am pleased to announce that the stamp duty on the shares of mid- and small-cap companies traded on Bursa Malaysia will be waived, effective March 2018, for a period of three years,” Najib said.

Najib also said following extensive discussions with the SC, several measures would be implemented to enhance the local stock market.

These measures included liberalising margin financing rules to make the local market more attractive, allowing intraday short-selling to all investors, adding a new category of traders known as “trading specialists” who could trade on their account, introducing a volume-based programme to catalyse greater trading activity and giving all new investors a fee waiver on trading and clearing fees for six months to encourage more participants to trade in the Malaysian market.

“These are just some of the steps we are taking to ensure that we do indeed participate in a renaissance of capitalism and that our growth is shared by all,” Najib explained.

Bursa Malaysia has more than 350 listed small- and mid-cap companies with a total market capitalisation of RM 217bil, accounting for more than a third of companies listed on the local bourse.