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SIDC Module 6 Cheat Sheet (2026)

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The most exam-relevant SIDC Module 6 key facts and definitions on one scannable page, organised by syllabus topic. The Module 6 paper is 60 MCQs in 1 hour 30 min. Every figure states its source and as-at date; rules change, so check the current SC or Bursa Malaysia text before relying on one.

Independent revision aid, not affiliated with or endorsed by SIDC or the Securities Commission Malaysia. Use it alongside, not instead of, the SIDC study manual and the SC's own publications.

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Module 6 at a glance

What Module 6 covers


Questions	60 MCQs
Duration	1 hour 30 min
Pass mark	60%
Format	Single-paper multiple-choice

Figures per the SIDC Examination Handbook. SIDC sets them and can change them; check sidc.com.my before you register.

How to use this sheet

Every key fact below is drawn from our Module 6 study notes, organised by topic. Skim it before a mock, then drill the topics you keep getting wrong.

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The Malaysian stock market and its regulators

Section 1 questions test whether you can put each player in the right box: the SC and its Shariah Advisory Council under the SCMA, the Minister's approvals under the CMSA, Bursa Malaysia Berhad and its subsidiaries, the central depository under SICDA, SIDREC and the Capital Market Compensation Fund, Bank Negara and the Companies Commission. Expect short scenarios that ask who approves, who decides or who pays, plus a few on the three boards, dealer's representatives and online trading security. In an open-book exam the marks go to candidates who know which Act or rule to open.

Key facts to remember

The Minister, on the SC's recommendation, approves a stock exchange (CMSA s.8); the SC must approve every rule amendment and decide within six weeks (s.9).
Acquiring 5% or more of an exchange holding company's voting shares needs the Minister's prior written approval; the application goes through the SC (CMSA s.25).
An exchange holding company may not cut its stake in its exchange, clearing house or depository below 75% without the Minister's approval (CMSA s.23).
An exchange holding company must act in the public interest; investor protection prevails over its own interest (CMSA s.21(2)); it must keep a Risk Management Committee (s.22).
SC functions sit in SCMA s.15; s.16 gives all powers necessary for, or reasonably incidental to, those functions under the securities laws.
SAC rulings bind the person who asked, and courts and arbitrators; they prevail over a registered Shariah adviser's ruling (SCMA ss.31ZM-31ZP).
Shariah list: updated twice a year, May and November; cash and interest-bearing debt each below 33% of total assets; Islamic cash and sukuk excluded.
SIDREC resolves investors' monetary disputes with its members by mediation and adjudication, free under its Mandatory Scheme for claims up to RM250,000.
A claimant may appeal a Capital Market Compensation Fund Corporation decision to the SC within 30 days; the SC decides within three months (CMSA s.166).
LEAP Market: Sophisticated Investors only (existing holders may sell), risk disclosure statement before the first trade, no margin financing (Rules 16.02-16.04).

Business structures and the Participating Organisation

Questions here test whether you can tell a sole proprietorship, a conventional partnership, a limited liability partnership and a company apart on liability, legal personality and size limits, and whether you know the Companies Act 2016 basics: private versus public companies, the optional constitution, minimum directors, resolutions, notice periods and AGM timing. The second half covers how a Participating Organisation of Bursa Securities is staffed: its Registered Persons, the three Heads and who may hold a dealing licence.

Key facts to remember

No partnership or association of more than 20 persons may carry on business for profit unless incorporated or formed under another written law (CA 2016 s.13).
Conventional partners are jointly liable without limit for firm debts (Partnership Act 1961 s.11); a firm has no separate legal personality.
An LLP is a body corporate with separate personality; formed by two or more persons; partners are not liable for other partners' wrongs (LLP Act 2012 ss.3, 6, 21).
An LLP may run with one partner for 6 months, extendable by the Registrar to 1 year; it needs a citizen or PR compliance officer (LLP Act ss.7, 27).
A company is a body corporate with personality separate from its members (CA s.20); a constitution is optional except for a company limited by guarantee (s.31).
Private company: at most 50 shareholders (joint holders count once, employee shareholders not counted), restricted transfers, no public offers (CA ss.42, 43).
Minimum directors: 1 for private, 2 for public; natural persons aged 18 or more, ordinarily resident in Malaysia (CA s.196).
Ordinary resolution: more than half; special resolution: at least 75% with 21 days' notice; written resolutions only for private companies (CA ss.291, 292, 297).
Public company AGM within 6 months of year end and 15 months of the last AGM; 21 days' notice for an AGM, 14 for others (CA ss.316, 340).
A Participating Organisation needs at least a Head of Dealing (holds a CMSRL), Head of Operations and Head of Compliance (no CMSRL); vacancies filled within 6 months (Bursa Rules 3.18-3.35).

Capital raising and the Listing Requirements

This topic turns on thresholds: 25% public spread, a 10% general mandate, 5% and 25% transaction tiers, 0.25% and 5% related party tiers, a 10% buy-back cap and a 30-day closed period. Candidates lose marks by mixing up figures that sit side by side in the Main, ACE and LEAP Market Listing Requirements, or by carrying a Main Market rule onto ACE or LEAP. The Lodge and Launch framework adds structured products sold only to sophisticated investors, with lodgement in place of SC approval. Expect short calculations and roman combination items.

Key facts to remember

Public spread: at least 25% in public hands; Main Market IPO needs 1,000 public holders, ACE 200, each with 100 shares; LEAP needs 10% (Main LR 3.06, 8.02; ACE 3.10; LEAP 3.03).
General mandate: new shares or convertibles up to 10% of issued shares, aggregated over 12 months, priced at no more than a 10% discount to 5-day WAMP (Main LR 6.03, 6.04).
Transactions: announce at a 5% percentage ratio; circular and shareholder approval at 25%; very substantial at 100% (Main LR 10.06, 10.07, 10.02(1)(n)).
Related party transactions: announce at 0.25%; circular, shareholder approval and independent adviser at 5%; main adviser at 25%; interested parties and connected persons abstain (Main LR 10.08).
Share buy-back: ordinary resolution, wholly out of the company's own retained profits, at most 10% of issued shares, price at most 15% above 5-day WAMP (Main LR 12.03-12.17).
Closed period: 30 calendar days before the targeted quarterly results announcement; deal only after notice, announcement and 1 full market day (Main LR 14.02, 14.08).
Board: at least 2 or one-third independent, whichever is higher, and at least 1 woman; audit committee of 3 or more non-executives, majority independent, independent chair (Main LR 15.02, 15.09, 15.10).
Reporting: quarterly report within 2 months of quarter end; annual report within 4 months of year end; LEAP semi-annual within 2 months (Main LR 9.22, 9.23; LEAP 6.12).
Lodge and Launch structured products: programme up to RM5 billion, used within 3 years; monthly post-issuance report within 7 business days, nil reports included (UCMP Guidelines Part 2).
Share Issuance Scheme: at most 15% of issued shares and 10 years; convertibles overall capped at 50% of issued shares (Main LR 6.38, 6.40, 6.50).

Trading on Bursa Malaysia Securities

Trading questions test whether you can apply the Rules of Bursa Malaysia Securities and the Participating Organisations' Trading Manual to a live order: which phase it falls in, whether the ATS will accept it, how short sales are controlled, how margin accounts are policed and when a Direct Business Transaction needs extra reporting. Expect short scenarios with prices, times and percentages. The exam is open book, so the marks go to candidates who know where each figure sits and can apply it fast.

Key facts to remember

Board lot is 100 units for ordinary shares; odd lots are 1 to 99 units; one order may not exceed 5,000 board lots (Trading Manual paras 2.2, 2.5).
Sessions: pre-opening 8.30 a.m., trading 9.00 a.m. to 12.30 p.m.; pre-opening 2.00 p.m., trading 2.30 p.m., pre-closing 4.45 p.m., Trading at Last 4.50 p.m. to 5.00 p.m.
Static limits on a normal day: plus or minus 30% of the Reference Price from RM1.00, or 30 sen below RM1.00 (Trading Manual para 4.4).
Dynamic and Last Price Limits: plus or minus 8% from RM1.00, or 8 sen below RM1.00, measured from the last done price (Trading Manual paras 4.5-4.6).
Tick sizes in RM: 0.5 sen below RM1; 1 sen RM1.00-9.99; 2 sen RM10.00-99.98; 10 sen from RM100 (Trading Manual para 2.9).
Margin Financing: 3-month periods with rollover, single-client cap 20% of Effective Shareholders' Funds, Equity at least 130% of Outstanding Balance (Rule 7.30).
RSS and IDSS orders: at-tick rule (at or above best ask) normally; uptick rule after a circuit breaker until the end of the next Market Day.
Short-selling suspensions: daily gross RSS plus IDSS at 3% of outstanding shares; aggregate net short at 10% (Directive 8-002 para 5.1).
Circuit breaker on FBMKLCI falls: Level 1 at 10%, Level 2 at 15%, Level 3 at 20% (rest of day) (Trading Manual para 8.3).
DBT priced 15% or 15 sen away from previous-day VWAP: report details by 12.30 p.m. next Market Day; under 50,000 units needs approval 3 Market Days ahead.

Market conduct, client treatment and AML/CFT

Three SC guidelines sit behind this topic, and the exam treats them as rule books: the Guidelines on Market Conduct and Business Practices for stockbroking companies and their representatives, the Guidelines on Conduct for Capital Market Intermediaries (the CMI Conduct Guidelines), and the AML/CFT/CPF and Targeted Financial Sanctions Guidelines for reporting institutions in the capital market. Expect short scenarios: a client asks a dealer's representative to log in for her, a company has nominee shareholders, a sanctions match appears. You score by knowing which party must act, what it must do and the exact figure: quarterly, monthly, 10 working days, seven years, more than 25%.

Key facts to remember

Discretionary trading needs prior senior management approval, a record of the trades and quarterly reporting to the client (Market Conduct Guidelines para 7.01).
No one may access or use a client's online trading account in any circumstances; sale proceeds go to the client directly and never by cash cheque (paras 8.02-8.04).
The compliance function reports directly to the Board and/or board committee, monthly; the Board and senior management are primarily accountable (paras 4.02, 4.04).
A dealer's representative may advise only on listed securities, with senior management approval, kept records and no fees, even for materials (section 9A).
CMI Conduct Guidelines: personal advice documents are kept at least seven years; accredited investors and opted-out high-net worth entities can be exempted (paras 9.04, 9.17).
A vulnerable client must not be denied a product just for being vulnerable; respond with extra time, other formats or a companion (Chapter 7 guidance).
Beneficial owner cascade: shareholders with more than 25%, then control by other means, then the senior manager (AML/CFT/CPF Guidelines para 8.1.11).
Delayed verification is capped at 10 working days; if missed, end the relationship and consider an STR (paras 8.1.26-8.1.28).
Keep CDD records at least seven years from account closure, and transaction records seven years from completion; longer if linked to an STR or case (paras 10.2-10.3).
STRs go to the FIED at Bank Negara Malaysia, including attempted transactions of any amount; revealing a suspicion or STR is tipping off (paras 11.8, 11.17, 12.1).

Clearing, delivery, settlement and corporate actions

This topic is about what happens after the match: T+2 delivery and payment, what Bursa Malaysia Securities Clearing does as central counterparty, how failed deliveries are bought in or cash settled, how contra and selling-out work, and how CDS accounts and corporate actions are handled at Bursa Depository. Exam items are short and timetable-driven, so count Market Days carefully and know which rule book each step comes from.

Key facts to remember

On-market trades settle T+2: seller's shares by 4.30 p.m. T+1 (first batch) or 11.30 a.m. T+2 (second batch); buyer pays and seller is paid by 2.00 p.m. T+2.
Buying-in without notice starts only if the seller misses the second-batch time; automatic buying-in runs on T+2 from 2.00 p.m. to 5.00 p.m.
Buying-in bid: ten buying-in ticks above the higher of the previous close or the previous session's last done price (Clearing Rule 5.2A; Schedule 5-1).
Odd-lot failures and unsuccessful buying-in are cash settled; the cash goes to the ultimate buyer if the original buyer resold.
Contra: an unpaid purchase sold before 2.00 p.m. on T+2; any difference is settled within 5 Market Days after the contra (Rules 9.09(3), 9.10).
Selling-out of non-paying buyers runs from 2.00 p.m. T+2 until T+3, needs no notice, and payment may be accepted until it is done.
Shares go ex-entitlement 1 Market Day before the books closing date; the last cum purchase day is 2 Market Days before it.
The Clearing House novates on-market trades only; DBTs are not novated and are never automatically bought in.
CDS accounts: individuals aged 18 or over; one account per individual per authorised depository agent; partnerships and undischarged bankrupts cannot open one.
Inactive account (has securities, 36 months idle): debits barred. Dormant account (nil balance, 36 months idle): debits and credits barred until reactivated.

Contract law, the stockbroker-client relationship and negligent misstatement

This topic links three ideas. The Contracts Act 1950 decides when an agreement is a binding contract and what happens when it goes wrong. The same Act's agency rules, backed by the CMSA and the Rules of Bursa Malaysia Securities, set what a stockbroking company owes its client and what it may do when the client does not pay. The tort of negligent misstatement, plus statutory liability under the CMSA, covers careless advice and false documents. Expect short scenarios: a posted acceptance, a disobeyed price limit, a third party phoning in an order, a raid on the trust account.

Key facts to remember

Acceptance by post is complete against the proposer when posted, so the proposer can revoke only up to that moment (Contracts Act ss.4(2), 5(1)).
A contract needs free consent, competent parties, lawful consideration and object (s.10); a minor's agreement is void; coercion, fraud or misrepresentation make it voidable.
A broker acting for a client is an agent: it must follow directions, use skill and diligence, render accounts, and account for secret profits (Contracts Act ss.164-169).
The client must indemnify the broker for lawful acts within its authority (s.175); an agent loses pay only for the part of the business it misconducted (s.173).
Rule 5.15: verify identity, obtain essential information and sign a written agreement; only an Authorised Nominee may trade for another person.
A third party may instruct on a client's account only with the client's written authorisation; profit sharing is allowed only in a Discretionary Account (Directive 5-001).
Trust account monies: withdrawals only to entitled persons, for brokerage and charges, or as law allows; never available for the broker's debts (CMSA s.113).
Clients may obtain copies of book entries on demand for a reasonable charge, and inspect contract notes free (CMSA s.114).
A PO need not give a defaulting client notice before selling out (Rule 9.13); it may still accept payment before the selling-out is done (Rule 9.12(2)).
Record keeping for brokers runs to seven years: CMSA s.108(3), Rule 5.04(2), DBT declarations under Rule 10.09(2)(c), and research circulars under CMSA s.91(8).

Licensing under the CMSA and the Licensing Handbook

Licensing questions test whether you can apply Part III of the Capital Markets and Services Act 2007 and the SC's Licensing Handbook to a person's situation: does this activity need a licence, does this applicant qualify, are these exam passes still valid, what happens when a licence is revoked, and what can a dealer's representative or trading representative do. Expect dates to compare, ratios to apply and fit and proper grounds to sort. The Guidance Note on Provision of Investment Advice adds social-media and seminar scenarios. Note the Handbook was revised on 30 September 2026 (R19); the changes affect Chapter 7A only.

Key facts to remember

Carrying on a business in a regulated activity without a CMSL or registered-person status: fine up to RM10 million or 10 years, or both (CMSA s.58).
Acting as a representative without a CMSRL: fine up to RM5 million or up to 5 years' imprisonment, or both (CMSA s.59).
Schedule 2 lists eight regulated activities, including dealing in securities, investment advice, financial planning and clearing for securities or derivatives.
CMSLs and CMSRLs are valid in perpetuity, but holders keep anniversary obligations such as CPE and fees (Licensing Handbook para 2.01(3)).
Dealing in securities CMSRL: pass SCLE Modules 6+7, 6+18, 7+17 or 17+18; CFA charterholders are exempt from Module 7 (Table 3).
SCLE results are valid for two years from each module's pass date; former licensees may reapply for the same activity within three years of leaving (para 4.05(6)-(7)).
CMSRL applicants must be at least 21 and fit and proper under s.65; holders need 20 CPE points a year, with no carry forward.
A dealer's representative with two years' standing may add investment advice with no further exam, given the principal's prior approval (para 4.05(11)-(12), Table 3a).
Trading representatives: order taking and execution only, one PO, at most 3 per licensed dealer's representative unless the SC allows up to 10 (Chapter 11).
Revocation of a dealing CMSL: appeal to the Minister within 14 days, whose decision is final; other Division 1 decisions: SC review within 14 days (s.80).

Securities offences under the CMSA

Securities offences are a large share of Section 3 of Module 6, and the questions are mostly short scenarios: a dealer's representative, a client, a director or a listed company does something, and you must say which provision bites, whether a defence applies, and what the penalty or civil remedy is. Almost everything sits in Part V of the Capital Markets and Services Act 2007 (ss.174 to 201), with the dealing offences in Part III (ss.91, 93, 97, 98) and the general offence provisions in Part XII. The exam is open book, so the marks go to candidates who know which section to turn to and can tell a deeming rule from a defence.

Key facts to remember

Sections 175 to 179 and 181 (false trading, manipulation, false statements, inducement, deceptive devices, dissemination): up to 10 years' jail and a fine of at least RM1 million (s.182).
Insider trading under s.188 carries the same penalty: imprisonment of up to 10 years and a fine of not less than RM1 million (s.188(4)).
An insider is anyone holding material non-public information who knows or ought reasonably to know it is not generally available; no link to the company is needed (s.188(1)).
Information is generally available only after a reasonable period for investors to absorb it; conclusions drawn from public information are generally available too (s.184).
Wash trades and matched orders with associates are deemed false trading (s.175(3)); the s.175(4) defence needs both an innocent purpose and no recklessness.
A seller must have a presently exercisable and unconditional right to vest the securities when selling; breach risks a fine up to RM5 million or 10 years, or both (s.98).
SC civil action: recover up to three times the gain made or loss avoided, plus a civil penalty of up to RM1 million (ss.200(2), 201(5)-(6)).
Civil claims under ss.199 to 201 may be brought within 12 years of accrual or discovery, whichever is later, whether or not anyone was charged.
Part V offences cannot be compounded (s.373 lists Parts II, III, VI, VII, X and XII); every prosecution needs the Public Prosecutor's written consent (s.375).
Section 317A: a director or officer acting to cause wrongful loss to a listed corporation faces 2 to 10 years' jail and a fine up to RM10 million.

Take-overs and mergers

Take-over questions are numbers questions in disguise. You must spot when control (more than 33%) or the 2% creeper is triggered, work out the minimum offer price from a purchase history, read an offer timetable in days from dispatch, and test the nine-tenths compulsory acquisition hurdle correctly. The law sits in three layers: Division 2 of Part VI of the CMSA (sections 216 to 225), the Malaysian Code on Take-overs and Mergers 2016 with its twelve general principles, and the SC's Rules on Take-overs, Mergers and Compulsory Acquisitions, which hold the detailed procedures and timelines.

Key facts to remember

Control means more than 33% of voting shares or voting rights; obtaining it triggers a mandatory offer unless the SC exempts (CMSA ss.216(1), 218(2)).
Creeper: a holder of over 33% but not over 50% triggers an offer by acquiring more than 2% in any six months (Code para 15; Rules para 2.01).
Mandatory offer price: at least the highest price paid in the offer period and six months before; voluntary offers look back three months (Rule 6.03).
Mandatory offers: cash or a wholly cash alternative, conditional only on acceptances taking the offeror's group above 50% (Rules 6.01(1), 6.04(1)).
Offer document within 21 days of the notice; open at least 21 days; independent advice circular within 10 days of dispatch; lapses 5.00 p.m. Day 60.
No revision after Day 46; once unconditional, open 14 more days; cash paid within 10 days, securities within 14 (Rules 12.03, 12.05, 14.01).
Compulsory acquisition: acceptances of at least nine-tenths of offer shares, excluding shares already held; notice within two months of reaching it (CMSA s.222).
Brokers and advisers connected with an offer disclose their dealings in offeree shares to the SC by 12.00 noon on the next market day (Rule 19.05).
SC administrative penalty up to RM1 million (CMSA s.220); failing to make a required offer: fine up to RM1 million, jail up to 10 years, or both (s.218(4)).

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Tip: print this page (Ctrl/Cmd + P) for a revision sheet. Independent and not endorsed by SIDC or the Securities Commission Malaysia. Verify every rule, figure and threshold against the current SC and Bursa Malaysia publications before relying on them.