Bursa Malaysia amends Main Market Listing Requirements in relation to structured warrants framework

27 February 2023

On 19 January 2023, Bursa Malaysia Securities Berhad made amendments to the Main Market Listing Requirements to further enhance and liberalise the structured warrants framework. The amendments are effective immediately.

Key amendments to the structured warrants framework include the following:

• Revising the market capitalisation requirements for underlying shares and exchange-traded funds (“ETFs”) as follows: (i) for underlying shares, revise the market capitalisation downward from RM1 billion to RM500 million; and (ii) for underlying ETFs, remove the market capitalisation requirements.
• Excluding leveraged ETF and inverse ETF as eligible financial instruments of structured warrants. A leveraged ETF aims to provide amplified returns of the daily performance of the index. An inverse ETF aims to provide return or performance that is the opposite of the daily performance of the index.
• Removing the option for issuance of put warrants together with call warrants of the same size and tenure based on underlying shares that are not part of approved securities.
• Shortening the minimum tenure of index-based structured warrants from six months to three months.
• Clarifying that for index-based structured warrants which are settled in cash, the final settlement price settling the corresponding index futures contract on the market day before the expiry date of the structured warrants will be used, if the contract is settled in a time zone that is behind Malaysian time.
• Clarifying the requirement to announce the unaudited half yearly financial statements and annual audited financial statements of a structured warrants issuer.