Bursa malaysia: Bursa Malaysia Securities Bhd has publicly reprimanded and fined KAF Investment Bank Bhd (KAF IB) RM300,000 for breaching the Bursa Malaysia Securities ACE Market listing requirements (ACE LR). In a statement, the bourse highlighted that KAF IB, in its role as sponsor for an applicant seeking admission to the ACE Market, failed to comply with several provisions under the ACE LR.

According to BERNAMA News Agency, KAF IB breached Rule 3.02(4) and Rules 4.07(1) and (2) of ACE LR by not making all reasonable due diligence inquiries and considering all relevant matters concerning the non-compliances of the certificate of completion and compliance (CCC) of two core manufacturing facilities owned by the applicant. This was crucial in assessing the suitability of the applicant's admission to the ACE Market.

Bursa Malaysia further noted that KAF IB violated Rule 2.18(1) for not ensuring that the pre-admission consultation pack and draft prospectus related to the proposed listing were accurate, free from material omissions, and not misleading, given the non-compliances. This included failing to disclose the non-compliances and that the applicant was in the process of obtaining a new or revised CCC for its two core manufacturing facilities.

As a result, KAF IB is required to present the decision to its board and conduct a review of its internal policies, processes, and procedures concerning its role as an adviser and sponsor. Bursa Malaysia Securities stated that the action was taken following paragraph 16.19 of the ACE LR after evaluating all relevant facts and circumstances.