Bursa Malaysia is govern by The Capital Markets and Services Act 2007 (“CMSA“). CMSA prescribes the laws among others, to regulate and to provide for matters relating to trading activities in the capital markets.
The following are four (4) types of trading activities that are prohibited in Bursa Malaysia as stipulated in CSMA.
1. Section 98 of CMSA – Short Selling
Short selling is the action of a person selling shares, which he does not own at the time of selling. Essentially, the law provides that a person shall not sell securities to a purchaser unless, at the time when he sells them:-