Bursa Malaysia Berhad is proposing to extend the dematerialisation of securities to all securities deposited with Bursa Malaysia Depository Sdn Bhd, advancing its push towards a fully scripless market and reducing reliance on physical certificates.
The exchange said it has issued a consultation paper seeking feedback on proposed amendments to the Rules of Bursa Malaysia Depository, together with consequential changes to the Main Market and ACE Market Listing Requirements.
Under dematerialisation, the requirement to issue and hold physical jumbo certificates as evidence of title or ownership of deposited securities would be removed.
Bursa Malaysia said the changes are intended to make depository processes more efficient and sustainable by reducing paper documentation and simplifying key stages involved in depositing securities.
The proposed amendments include simplifying the securities deposit process, enhancing the roles of issuers and share registrars, and introducing transitional arrangements for the return and cancellation of existing physical scrips.
The initiative forms part of Bursa Malaysia’s broader effort to modernise and digitalise market infrastructure, with the exchange seeking to reduce paper-based processes, improve operational efficiency and shorten time-to-market.
Moving away from physical jumbo certificates is also expected to reduce operational risks associated with handling and storing physical documents, while lowering issuance, delivery and administrative costs.
The latest proposal represents the second phase of Bursa Malaysia’s dematerialisation programme.
Phase 1 was implemented on Aug 1, 2025 and has resulted in more than 2,700 dematerialised issuances as of Aug 28, 2026, the last trading day of the month.
The initial phase covered specified securities, including those of newly listed real estate investment trusts, exchange-traded funds, structured warrants and business trusts.
It also covered provisional allotment letters for rights issues and provisional letters of offer for renounceable offers for sale.
Bursa Malaysia said Phase 2 would extend the framework across all securities, representing a significant step towards establishing a scripless environment in Malaysia’s capital market.
By eliminating the continued need for physical certificates, the proposed framework would further digitalise post-trade and depository processes and reduce administrative friction for issuers and other market participants.
Bursa Malaysia is seeking views from stakeholders on the proposed amendments before finalising the regulatory changes.
The public consultation will run for six weeks from Sept 1 to Oct 13, 2026.
