SC approves six equity crowdfunding platform operators

KUALA LUMPUR: The Securities Commission of Malaysia (SC) has approved six equity crowdfunding platform operators under the equity crowdfunding framework (ECF) to give small businesses and entrepreneurs greater access to capital.

The six operators are Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+.

Chairman Datuk Ranjit Ajit Singh in a statement yesterday said the ECF is an important milestone for inclusivity in the Malaysian capital market and a component of SC’s strategy to democratise finance.

“Over the years, Malaysia has developed a diversified and wellestablished RM2.8 trillion capital market, helping businesses to grow as well as financing long-term investments in the economy.

“However, for capital markets to be inclusive, small and medium entreprises (SMEs) and start-ups must also be able to obtain marketbased financing. Hence, it is timely to further widen access through innovation in financial technologies such as ECF platforms,” he said.

Ranjit, who is also the chairman of Malaysian Venture Capital Development Council, said 27 applications have been received since SC released the call for registration to become an ECF operator in February 2015.

He said the applications came from a diverse group of interested parties, both foreign and domestic, reflecting the attractiveness of and confidence in the new fundraising framework.

Meanwhile, the Multimedia Development Corporation (MDeC) yesterday signed memorandums of understanding (MoUs) with Crowdonomic, pitchIN and Propellar Crowd+ to conduct programmes in funnelling information and communications technology (ICT) companies to ECF platforms. — Bernama