Capital Markets And Services Act 2007 And Regulations (Act 671) [As At 1st January 2025]

Capital Markets And Services Act 2007

and Regulations(Act 671)

[As At 1st January 2025]

The Capital Markets and Services Act 2007 (Act 671) is a Malaysian law that regulates capital markets and financial services, ensuring a fair, efficient, and transparent system. Overseen by the Securities Commission Malaysia (SC), the Act governs securities, derivatives, fund management, and other capital market activities while enhancing investor protection and maintaining market integrity.  

Key Provisions of the Act:
1. Capital Market Regulation – The Act sets out rules for capital market activities, covering the issuance and trading of securities, derivatives, and fund management services.  

2. Licensing and Registration – It mandates that capital market intermediaries, including stockbrokers, fund managers, and financial advisors, obtain a license or be registered with the Securities Commission.  

3. Investor Safeguards – The Act enforces disclosure requirements, prevents fraudulent activities, and ensures fair trading practices to protect investors.  

4. Compliance and Penalties – It specifies penalties for violations such as fraud, insider trading, market manipulation, and failure to comply with regulatory standards.  

5. Regulatory Authority – The Securities Commission is empowered under the Act to oversee, investigate, and enforce regulations to uphold market stability and integrity.  

Regulations Under the Act: 
The Act is supplemented by various regulations and guidelines that provide further details on:  
- Licensing and regulatory compliance for market participants.  
- Procedures for securities issuance and corporate governance standards.  
- Regulations governing mergers, acquisitions, and takeovers within the capital market.  
- Investor disclosure and reporting obligations.  

The Capital Markets and Services Act 2007 is fundamental in strengthening Malaysia’s financial system by fostering transparency, protecting investors, and supporting sustainable market growth.

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