Securities Commission Malaysia paves the way for trading of fractional shares - Revised guidelines enable greater access, affordability and inclusivity for retail investors

27 September 2023

On 7 September 2023, the Securities Commission Malaysia issued the revised Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives (“SBC Guidelines”).

The SBC Guidelines outline the requirements allowing stockbroking companies to offer fractional share trading services for shares listed on Bursa Malaysia. One of the key requirements is for stockbroking companies to implement adequate systems, policies and procedures, which would then ensure fair treatment of customers’ orders, price transparency, and proper supervision of the fractional share trading service.