SIDC Module 6 The Malaysian stock market and its regulators question: Bursa Securities submits a proposed amendment

SIDC Module 6The Malaysian stock market and its regulators

Bursa Securities submits a proposed amendment to its rules to the SC on 1 June. Under the CMSA, which statement is correct?

A It has no effect unless the SC approves it, and the SC must give notice of its decision within six weeks
B It takes effect once the Bursa Securities board approves it, with notice to the SC within six weeks
C It needs the Minister's approval on the SC's recommendation, which must be given within three months
D It takes effect on 1 June unless the SC objects to it in writing within six weeks of receiving the proposal

Show the answer and explanation

Answer: A. It has no effect unless the SC approves it, and the SC must give notice of its decision within six weeks

Section 9 of the CMSA requires a stock exchange to submit proposed rules and rule amendments to the SC for approval. Under s.9(2) no amendment has effect unless the SC approves it, and under s.9(5) the SC must give written notice of approval or disapproval within six weeks of receipt. There is no deemed approval by silence, so the amendment does not take effect on submission. The Minister's role under s.8 is to approve a body corporate as a stock exchange, not to approve its rule changes. Approval by the exchange's own board is not enough, because the SC's approval is a condition of the amendment having any effect. Source: CMSA 2007 s.9(1), (2), (5) (as at October 2026).

Common mistake

Candidates assume a regulator's silence means consent, or send rule changes to the Minister who approves exchanges.

Practise more Module 6 The Malaysian stock market and its regulators questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: The Malaysian stock market and its regulators SIDC Module 6 practice questions & mock exams

Related SIDC Module 6 questions

An investor holds 3% of the voting shares of Bursa Malaysia Berhad and agrees to buy another 2.5%. What does the CMSA require before he enters into the agreement?An exchange holding company owns all the shares of its approved stock exchange subsidiary and plans to sell enough to cut its stake to 70%. What does the CMSA require?An exchange holding company finds that a fee change which would lift its profits would also weaken protection for retail investors. How does the CMSA require it to resolve this?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.

SIDC Module 6 The Malaysian stock market and its regulators question: Bursa Securities submits a proposed amendment

SIDC Module 6The Malaysian stock market and its regulators

Bursa Securities submits a proposed amendment to its rules to the SC on 1 June. Under the CMSA, which statement is correct?

A It has no effect unless the SC approves it, and the SC must give notice of its decision within six weeks
B It takes effect once the Bursa Securities board approves it, with notice to the SC within six weeks
C It needs the Minister's approval on the SC's recommendation, which must be given within three months
D It takes effect on 1 June unless the SC objects to it in writing within six weeks of receiving the proposal

Show the answer and explanation

Answer: A. It has no effect unless the SC approves it, and the SC must give notice of its decision within six weeks

Common mistake

Candidates assume a regulator's silence means consent, or send rule changes to the Minister who approves exchanges.

Practise more Module 6 The Malaysian stock market and its regulators questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.