Bursa Malaysia Securities Berhad has publicly reprimanded and imposed a fine of RM350,000 on RHB Investment Bank Berhad, as the Sponsor and Principal Adviser for an applicant seeking admission to the ACE Market of Bursa Malaysia Securities for breaches of the Bursa Malaysia Securities ACE Market Listing Requirements.
Bursa Malaysia Securities found that RHBIB had breached for failing to conduct appropriate/proper due diligence make all reasonable due diligence enquiries and consider all relevant matters to ensure that there was no misstatement or material omission and/or that all material information were properly and accurately disclosed in the submission and disclosures made
in the initial listing application (ILA) and draft prospectus submitted to Bursa Malaysia Securities (Initial Submission) in relation to the proposed listing of the Applicant.
The second breach was for failing to immediately notify Bursa Malaysia Securities of the material developments concerning the Applicant’s business, operations, future plans and prospects after the Initial Submission.
The finding of breach and imposition of the public reprimand and fine on RHBIB upon completion of due process after taking into consideration all facts and circumstances of the matter including the materiality of the breaches, the roles and responsibilities of RHBIB as a Sponsor and Principal Adviser and the fact that RHBIB had previously committed breach(es) of the listing requirements.
Bursa Malaysia said it views the breaches seriously in view of the primary and crucial role played by the Sponsors and advisers in the assessment of the suitability of an applicant for admission to the ACE Market which is a ‘sponsor-driven’ market and ensuring quality, accurate and adequate disclosures in the initial public offering and prospectus for the proposed listing of an applicant.
RHBIB had failed to conduct appropriate/proper due diligence make all reasonable due diligence enquiries and consider all relevant matters to ensure that there was no misstatement or material omission and/or that all material information was properly and accurately disclosed in the initial submission.
