SC to state en­ti­ties of­fer­ing peer-to-peer fi­nanc­ing

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: The Se­cu­ri­ties Com­mis­sion (SC) will an­nounce se­lected en­ti­ties that of­fer peer-topeer fi­nanc­ing in a cou­ple of months, said chair­man Tan Sri Ran­jit Ajit Singh ( pix).

He said ap­pli­ca­tions to be a reg­is­tered peer-to-peer fi­nanc­ing op­er­a­tor had re­ceived over­whelm­ing response.

“We also have five reg­is­tered eq­uity crowd­fund­ing plat­forms, at­tract­ing seven is­suers and raised a to­tal of RM4.7 mil­lion,” he said in his spe­cial ad­dress at the Malaysian Pri­vate Eq­uity Fo­rum 2016 here yes­ter­day.

The peer-to-peer frame­work will en­able sole pro­pri­etor­ships, part­ner­ships, in­cor­po­rated limited li­a­bil­ity part­ner­ships, pri­vate limited and un­listed public com­pa­nies to ac­cess mar­ket-based fi­nanc­ing to fund their projects or busi­nesses, via an elec­tronic plat­form.

Ran­jit also an­nounced the Malaysia Ven­ture Cap­i­tal and Pri­vate Eq­uity De­vel­op­ment Coun­cil will be form­ing an in­dus­try­driven work­ing group tasked to iden­tify rec­om­men­da­tions for im­prov­ing and build­ing ca­pac­ity within the ven­ture cap­i­tal and pri­vate eq­uity ecosys­tem.

“This work­ing group will fo­cus on cen­tral is­sues which in­clude ex­plor­ing how our home­grown dealflow can be fur­ther im­proved, pos­si­ble in­ter­me­di­a­tion chan­nels that could fa­cil­i­tate port­fo­lio scop­ing, and how the mo­bil­i­sa­tion of our sav­ings pool can be fur­ther en­cour­aged,” he said.

Over the years, the SC has pur­sued proac­tive ini­tia­tives to en­sure that the right in­cen­tives and struc­ture are in place to fa­cil­i­tate ven­ture cap­i­tal and pri­vate eq­uity ac­tiv­i­ties.

One such mea­sure was es­tab­lish­ing a tax ex­emp­tion frame­work that al­lows qual­i­fy­ing ven­ture cap­i­tal/pri­vate eq­uity firms which have in­vested sig­nif­i­cantly in seed or early stage com­pa­nies to en­joy tax-free in­come, he added.

“Be­ing of the view that ef­fec­tive reg­u­la­tion caters to the in­ter­ests of both the in­dus­try and its in­vestors, the SC has taken a prag­matic and pro­por­tion­ate ap­proach in reg­u­lat­ing the ven­ture cap­i­tal and pri­vate eq­uity sec­tors, which is con­sis­tent with that taken by other com­pa­ra­ble ju­ris­dic­tions glob­ally, such as Sin­ga­pore, Hong Kong and the US,” said Ran­jit.

He went on to say that the SC also has lib­er­alised cer­tain re­quire­ments to ac­cord greater flex­i­bil­ity and bet­ter ac­com­mo­date ven­ture cap­i­tal and pri­vate eq­uity ac­tiv­i­ties.

Ran­jit said the lib­er­al­i­sa­tion moves were con­cur­rently sup­ported by mea­sures to en­hance the qual­ity of reg­is­tered ven­ture cap­i­tal and pri­vate eq­uity firms.

“It is with this in mind that the SC has also sought, through its reg­u­la­tory frame­work, to en­sure that not only will ven­ture cap­i­tal/pri­vate eq­uity firms dis­play good busi­ness prac­tices in re­la­tion to con­duct­ing op­er­a­tions, but also that these firms are well­man­aged with ad­e­quate cap­i­tal and per­son­nel of suf­fi­cient ex­pe­ri­ence and ex­per­tise,” he added. – Ber­nama

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