Regulatory Alerts2017-01-19
Summary of Key Amendments to Asset Valuation Guidelines Issued on 19 January 2017
Bursa Malaysia Securities Bhd issued amendments to its Asset Valuation Guidelines on 19 January 2017 to accommodate mineral, oil, and gas exploration corporations on the Main Market. The update introduces definitions for MOG and O&G assets while excluding extractive industries from specific valuation requirements and report contents. Additionally, the guidelines streamline valuer eligibility criteria and enhance editorial consistency to improve clarity.
1 ASSET VALUATION GUIDELINES SUMMARY OF KEY AMENDMENTS ISSUED ON 19 JANUARY 2017 The following table provides a summary of the key amendments to the Asset Valuation Guidelines which was issued on 19 January 2017: General Amendments
- Changes in relation to the introduction of the policy for the admission of mineral, oil and gas exploration and extraction corporations or assets to the Main Market of Bursa Malaysia Securities Bhd.
- Changes in general layout and editorial amendments including streamlining of terminologies to enhance clarity and consistency. Amendments to specific paragraphs Prior to 19 January 2017 (paragraph) Issued on 19 January 2017 (paragraph) Comments Chapter 2: Definitions Chapter 2: Definitions Definitions of “MOG assets”, “MOG resources” and “O&G assets” inserted. Definition of “real estate” amended. Chapter 3: Appointment of Valuer Paragraph 3.03 - Existing paragraph removed as requirements have been incorporated in eligibility requirements for valuer. Paragraph 3.05 Paragraph 3.03 Amended to specify eligibility requirements for valuer.
- Paragraph 3.04 New paragraph inserted to specify eligibility requirements for valuer.
2 Amendments to specific paragraphs Prior to 19 January 2017 (paragraph) Issued on 19 January 2017 (paragraph) Comments Paragraph 3.04 Paragraph 3.05 Amended paragraph numbering. Paragraphs 3.07 and 3.08 - Existing paragraphs removed as requirements have been incorporated in the eligibility requirements for valuer. Chapter 4: Valuation Paragraph 4.05 Paragraph 4.05 Amended to exclude properties in the extractive industries. Chapter 5: Contents of Valuation Report Paragraph 5.14(m) - Existing paragraph removed to exclude extractive industries. Chapter 6: Valuation Certificate Paragraph 6.08(b)(i) Paragraph 6.08(b)(i) Amended to exclude extractive industries. Schedule 1: Declaration by Firm Paragraph 2(i) - Removed following amendments in Chapter 3. Paragraph 2(ii) Paragraph 2(i) Amended to reflect changes made in Chapter 3. Paragraph 3 Paragraph 3 Amended to require confirmation statement on compliance of valuation report(s) with the guidelines. Best Practices Paragraphs 1.54 and 1.55 - Existing paragraphs removed to exclude extractive industries.