Malaysia legislation
Section 137
Section 137
(a)
ensure that it adequately supervises the market operations and the conduct of market participants;
(b)
ensure the adequacy and efficiency of internal controls;
(c)
ensure market participants follow capital adequacy rules;
(d)
investigate misconduct or apparent misconduct by market participants and their representatives that could seriously affect investors or other participating organizations and promptly report to the Authority on these instances of misconduct;
Act 704
(e)
investigate possible market abuses, including insider dealing and fraudulent behaviour; and
(f)
take disciplinary measures or agree to a settlement after a public hearing.
(2)
Where an investigation is carried out by such exchange, it shall, in writing, forthwith—
(a)
inform the Authority of the nature of such investigation and persons involved in the investigation; and
(b)
advise the Authority on the status of such investigation at such intervals as the Authority may request.
(3)
On the completion of an investigation, such exchange shall—
(a)
transmit to the Authority all information in its possession relating to any such investigation; and
(b)
inform the Authority of the outcome of such investigation and of any disciplinary measure or other course of action taken as a result of an investigation.
(4)
An exchange established under section 134 shall ensure that an adequate budget allocation is made to properly carry out the regulatory functions mentioned in subsection (1).
(5)
In this section “internal controls” means the system of controls put in place to asses and ensure the effectiveness of an exchange in the exercise of its regulatory functions and “market participants” means any investment dealer or any other person which has been given direct access to trading on the exchange.
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