Malaysia Securities Commission’s rules for crowdfunding, can raise up to RM3m in 12 months

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KUALA LUMPUR: The Securities Commission has released the rules for the registration of equity crowdfunding (ECF) platforms and to provide governance arrangement for the operator of such platforms.

Under this framework, an eligible issuer can raise up to RM3mil within a 12-month period, the SC said on Tuesday.

The SC said issuers will be able to tap on investments from retail, sophisticated as well as angel investors, subject to the investment limits as provided in the Guidelines on Regulation of Markets under Section 34 of the Capital Markets and Services Act 2007.

ECF investors are given a six-day cooling off period, within which they may withdraw the full amount of their investment.

“In addition, if there is any material adverse change relating to an issuer, the investors must be notified of such change. The investors will be given the option to withdraw their investment if they choose to do so within 14 days after the said notification,” it said.

The SC said the Guidelines require the operator’s board of directors to be fit and proper and have the ability to operate an orderly, fair and transparent market.

As the operator plays a critical role in ensuring confidence in the ECF platform, the Guidelines entrust the operator with obligations to ensure issuers’ compliance with platform rules.



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