SIDC Module 6 Practice Questions by Topic

Securities and the Malaysian stock market (Main, ACE and LEAP Markets), the Islamic capital market, market participants and intermediaries, technology in securities trading and broking services for digital assets, then the law behind the industry and the regulatory bodies: the Securities Commission Malaysia (SCMA 1993), Bursa Malaysia and its subsidiaries, Bank Negara Malaysia and others. Syllabus Topics 1 and 2 (Section 1).

Sole proprietorships, partnerships and companies under the Companies Act 2016, a company's constitution, directors and general management, and the administration and management of a Participating Organisation of Bursa Malaysia Securities. Syllabus Topic 3 (Section 1).

Primary issues of ordinary shares, post-listing requirements, secondary-market issues (rights, bonus, placements), debt securities, derivatives and structured products, the Main, ACE and LEAP Market Listing Requirements within SIDC's scope (admission, continuing obligations, continuing disclosure, transactions, share buy-backs, dealings in listed securities, corporate governance, suspension and de-listing) and the Lodge and Launch Framework for structured products. Syllabus Topic 4 (Section 2).

The trading system, trading sessions and order types, the Rules of Bursa Malaysia Securities on trading (including short selling, margin and day trading), and the Participating Organisations' Trading Manual. Syllabus Topic 5, parts 1 to 3 (Section 2).

The SC's Guidelines on Market Conduct and Business Practices for Stockbroking Companies and Licensed Representatives, the Guidelines on Conduct for Capital Market Intermediaries (treatment of clients and vulnerable clients, personal advice, conflicts, client assets, online platforms) and the SC's AML/CFT/CPF and Targeted Financial Sanctions Guidelines for reporting institutions in the capital market. Syllabus Topic 5, parts 4 and 5 (Section 2).

Clearing through Bursa Malaysia Securities Clearing, delivery and settlement (T+2), the central depository system under the Securities Industry (Central Depositories) Act 1991, CDS accounts, failed deliveries and buying-in, and corporate actions (entitlement dates, bonus issues, rights issues, share splits). Syllabus Topic 6 (Section 2).

The Contracts Act 1950 and the essential elements of a contract, contracts made on Bursa Securities, the relationship between a stockbroking company and its client (agency, duties, rights, direct business transactions, record keeping) and the tort of negligent misstatement with statutory liability under the CMSA. Syllabus Topics 7, 8 and 9 (Section 2).

The licensing framework under Part III of the Capital Markets and Services Act 2007 (CMSL and CMSRL, regulated activities, registered persons, fit and proper criteria, conditions, suspension and revocation), the SC Licensing Handbook and the Guidance Note on Provision of Investment Advice. Syllabus Topic 10 (Section 3).

Prohibited conduct in trading securities under Part V of the CMSA: false trading and market rigging, stock market manipulation, false or misleading statements, fraudulent inducement, use of manipulative and deceptive devices, insider trading, short selling, and other offences relating to dealing and to false and misleading statements, with civil and criminal consequences. Syllabus Topic 11 (Section 3).

The Malaysian Code on Take-overs and Mergers 2016 and the Rules on Take-overs, Mergers and Compulsory Acquisitions: general principles, mandatory and voluntary offers, offer processes and timetables, the role of a CMSRL holder and penalties. Syllabus Topic 12 (Section 3).