Today, Bursa Malaysia is one of the largest Bourses in Asia with merely under 1000 listed companies offering a broad scope of investing picks to the universe. Bursa Malaysia operates as a to the full incorporate exchange, offering the full scope of Exchange-related services including glade, trading, colony and depositary services. In 1930, the first formal securities concern organisation in Malaysia, Singapore Stockbrokers ‘ Association was established and it was re-registered as the Malayan Stockbrokers ‘ Association in 1937. In 1960, the Malayan Stock Exchange was established and the public trading of portions commenced. Direct telephone lines linked the board system had trading suites in Singapore and Kuala Lumpur.
The Stock Exchange of Malaysia was established in 1964. In 1965, the Stock Exchange of Malaysia became known as the Stock Exchange of Malaysia and Singapore with the sezession of Singapore from Malaysia. The Stock Exchange of Malaysia and Singapore was divided into the Kuala Lumpur Stock Exchange Berhad and Stock Exchange of Singapore due to the ceased of currency exchangeability between Malaysia and Singapore in 1973. The operation of the Kuala Lumpur Stock Exchange Berhad was taken over by the Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by warrant.
The name Bursa Malaysia Berhad changed on April 14, 2004. The intent was to heighten their competitory place and to react to planetary tendencies in the exchange sector by doing them more customer-driven and market-oriented. They are focused on assorted enterprises aimed at bettering our merchandise and service offerings, increasing the liquidness and speed of their markets, bettering the efficiency of the concerns and accomplishing economic systems of graduated table in their operations.
On 18 March 2005, Bursa Malaysia was listed on the Main Board of Bursa Malaysia Securities Berhad with a 17 % or RM0.50 premium over its retail monetary value of RM3.00. On 5 October 2007, they accomplished dual accomplishments when the exchange received enfranchisements for the conformity to the ISO 9001: 2000 Quality Management System and ISO 14001: 2004 Environmental Management System criterions. As of 31 December 2007, Bursa Malaysia had 986 listed companies with a combined market capitalisation of $ 325billion.
Bursa Trade Securities, a new trading platform launched in December 2008 enables faster processing and executing of orders and provides wider trading maps and characteristics. Bursa Trade Securities followed on from the execution of Bursa Trade Derivatives two old ages earlier.
2.2 Organization Structure
Organizational construction is the formal system of undertaking and describing relationships that controls, co-ordinates, and motivates employees so that they cooperate to accomplish an organisation ‘s ends. Besides, it encourages employees to work hard and to develop supportive work attitudes and allows people and groups to collaborate and work together efficaciously.
Dato ‘ Yusli Mohamed Yusoff, aged 50, is the Chief Executive Officer of Bursa Malaysia. He was appointed to the station by the Malaysian Finance Minister on March 1, 2004, and elected as an Executive Director on April 10, 2004. He was the Chief Executive Director of CIMB Securities from the twelvemonth 2000 to twelvemonth 2004. Furthermore, he served as Chairman of the Association of Stock Broking Companies Malaysia from twelvemonth 2003-2004. He is a Malayan graduated with a Bachelor of Economics from the University of Essex ( United Kingdom ) in 1981. Besides, he s a member of the Institute of Chartered Accountants, England & A ; Wales ( ICAEW ) , the Malaysian Institute of Accountants ( MIA ) , the Malaysian Institute of Certified Public Accountants ( MICPA ) and Honorary Member of the Institute of Internal Auditors Malaysia ( IIAM ) .
The Head, Group Internal Audit which include Chief Operating Officer, Chief Information Officer, Bursa Malaysia Derivatives CEO, Chief Market Operations Officer, Chief Group Human Resources Officer, Chief Financial Officer and Chief Regulatory Officer. Those places are all who are professionals and have a well cognition in the field. The COO still in vacant because of the resign of Omar Merican on June 2010. Lim Jit Jee had appointed as the CIO of Bursa Malaysia effectual on September 15, 2008 who will head the Technology Group. He has more than 20 old ages experience in the securities industry. Chong Kim Seng, aged 51, the Bursa Malaysia Derivatives CEO graduated with a Bachelor of Science grade from the National University of Singapore in 1983. The CMOO, Devanesan Evanson is a Fellow of the ACCA and a member of the MIA and appointed as CMOO effectual 1 January 2008.
Siti Aishah Md Lassim joined Bursa Malaysia as CHRO on 3 November 2008 and brings with her more than 18 old ages of experience in diverse Fieldss which include direction consulting, engineering and human resources. The CFO, Nadzirah Abd Rashid a Malayan graduated with a Bachelor of Arts in Accountancy from the University of South Australia. She has more than 20 old ages of experience in the banking and finance sector. Last, Selvarany Rasiah, the CRO with elderly 44, a Malayan graduated with a Bachelor of Laws grade from the University of Malaya and has admitted as an Advocate and Solicitor of the High Court of Malaya.
2.3 Regulative Structure
Bursa Malaysia acts as the frontline regulator of the Malayan capital market and has the duties to guarantee a just and orderly market in the securities and derived functions that are traded through its installations. The regulative maps are performed and managed by Regulation Functional Group. Therefore, the Chief Regulatory Officer plays an of import function in provides the Board with a regulative study on a regular footing and the regulative program which includes the regulative budget is approved by the Board.
Furthermore, as an incorporate exchange, Bursa Malaysia besides has the responsibility to guarantee orderly traffics in the securities deposited with Bursa Malaysia, and orderly, clear and efficient glade and colony agreements for minutess cleared and settled through its installations. Therefore, Bursa Malaysia has put in topographic point a comprehensive and effectual regulative and supervise model to modulate the market and its participants, including the listed issuers and their managers and advisors, Participating Organizations, Trading Participants, Uncluttering Participants, Authorized Depository Agents and Authorized Direct Members. The Capital Market is governed by such Acts of Parliament including Capital Markets and Services Act 2007, Securities Industry ( Central Depositories Act ) 1991, Securities Commission Act 1993, Companies Act 1965, Offshore Companies Act 1990 and Labuan Offshore Securities Industry Act 1995.
Bursa Malaysia overruling aims, in add-on to dispatching its statutory responsibilities are investor protection, transparence, high criterions of behavior and administration, market unity and that all relevant individual can take part in the market with assurance. So, Bursa Malaysia has issued assorted sets of regulations to qualify the demands that need to be met by the regulated entities either upon admittance and or on a go oning footing. It administers and proctors conformity with these regulations and takes rigorous, prompt and nonsubjective enforcement action for breaches of these regulations. Besides, Bursa Malaysia actively supervises the listed issuers and the agents. It besides undertakes surveillance over the trading activities in the market place.
2.4 Corporate Administration
Corporate administration is the procedure and construction used to direct and pull off the concern and personal businesss of the company towards heightening concern prosperity and corporate answerability with the ultimate aim of recognizing long term stockholder value, whilst taking history the involvements of other stakeholders. This indicates that corporate administration is non merely applied to the stockholders but the other stakeholders as good.
Bursa Malaysia adheres to high criterions of corporate administration patterns under the leading of the Board, as guided by the Malayan Code of Corporate Governance ( CODE ) which was revised on 1 October 2007. The statement is made in conformity with paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Berhad ( LR ) . It includes Memorandum & A ; Articles of Association, Governance Model, Term of Reference and Code of Ethics.
Memorandum & A ; Articles of Association states all the aims of Bursa Malaysia and the information in the company. This let the stakeholders and the stockholders know all the regulations and their ain duties. Governance Model states the functions and the duties of the board and each arises out of a different relationship between board members and a staff member. Besides, Term of Reference give mentions to board of managers, administration commissions, advisory panels, and commissions established pursuant to LOSIA, direction commissions and regulative commissions. Code of Ethics serves to help in specifying the ethical criterions and behavior at work required at Bursa Malaysia. This Code is to be interpreted within the model of the Torahs and imposts of Malaysia besides being read in line with Bursa Malaysia ‘s directives, guidelines and policies, as issued from clip to clip.