51. New Parts IIIb and IIIc

The principal Act is amended by inserting after Part IIIa the following Parts:

“Part IIIb

MANAGEMENT OF SYSTEMIC RISK IN the CAPITAL MARKET

Interpretation 31ze. For the purposes of this Part—

“market participant” includes an investor, issuer, intermediary, capital market service provider, exchange holding company, stock exchange, derivatives exchange, central depository and clearing facility;

“systemic risk in the capital market” means a situation when one or more of the following events occur or is likely to occur:

financial distress in a significant market participant or in a number of market participants;

an impairment in the orderly functioning of the capital market; or

an erosion of public confidence in the integrity of the capital market.

which the Commission considers necessary for the purposes of monitoring, mitigating and managing systemic risks in the capital market; or

where the Commission receives a request from Bank

For the purposes of subsection (1), where the person concerned is solely under the supervision or oversight of

Any person who is required to submit any information or document under this section shall provide such information or document notwithstanding any obligation under any contract, agreement or arrangement whether express or implied to the contrary.

Any person who fails to comply with the notice issued under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or to both.

In exercising its power under subsection (1), the

For the purposes of subsection (1), where the person concerned is solely under the supervision or oversight of Bank Negara Malaysia, the Commission shall make a recommendation to Bank Negara Malaysia to issue such directive.

Before issuing a directive under subsection (1), the

Notwithstanding subsection (4), the Commission may issue a directive under subsection (1) without first giving the person an opportunity to be heard if any delay in issuing such directive would aggravate systemic risk in the capital market.

Where a directive is issued pursuant to subsection (5)

When a person is given an opportunity to be heard under subsection (6), a directive issued under subsection (1)

Any person who fails to comply with the directive issued under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or to both.

provide assistance to any supervisory authority or

obtain any information or document from, or share any information or document with, any supervisory authority or Government agency responsible for promoting financial stability if the Commission considers it

enter into arrangements to cooperate with other supervisory authorities and co-ordinate stability measures with such supervisory authorities.

Where the Commission shares any information or document under paragraph (1)(b)—

with any supervisory authority or Government agency responsible for promoting financial stability in

with any supervisory authority outside Malaysia, such supervisory authority shall give an appropriate undertaking for protecting the confidentiality of such information or document and the purposes for which the information or document may be used.

For the purposes of this section, “supervisory authority”

responsible for monitoring, mitigating and managing systemic risk in the capital market or promoting financial stability; or

responsible for the supervision or oversight of capital market intermediaries or participants.

The Shariah Advisory Council may determine its own procedures.

to ascertain the application of Shariah principles on any matter relating to Islamic capital market business or transaction;

to issue ruling on any matter relating to Islamic capital market business or transaction;

to advise the Commission on any Shariah issue relating to Islamic capital market business or transaction;

to provide advice to any person on any Shariah issue relating to Islamic capital market business or transaction; and

such other functions as may be prescribed by the

fiqh muamalah;

Islamic jurisprudence;

Islamic finance; or

any other related discipline.

If a judge of the High Court, the Court of Appeal or the Federal Court, or a judge of the Shariah Appeal Court of a State or Federal Territory, is to be appointed under subsection (1), such appointment shall not be made except—

in the case of a judge of the High Court, the Court of Appeal or the Federal Court, after consultation by the Commission with the Chief Justice; and

in the case of a judge of the Shariah Appeal Court of a State or Federal Territory, after consultation by the Commission with the Chief Shariah Judge of that

A member of the Shariah Advisory Council appointed under subsection (1) shall hold office on such terms and conditions as may be provided in their respective letters of appointment, and shall be eligible for reappointment.

The members of the Shariah Advisory Council shall be paid such remuneration and allowances as may be determined by the Commission.

establish a secretariat and such other committees as the

appoint an officer of the Commission or any other person to be a member of the secretariat or such other committees.

seek the advice of; or

refer a matter for a ruling by, the Shariah Advisory Council relating to its Islamic capital market business or transaction in order to ascertain that it does not involve any element which is inconsistent with the

take into consideration any ruling of the Shariah

refer such matter to the Shariah Advisory Council for its ruling.

Any request for advice or a ruling of the Shariah

the licensed person, stock exchange, derivatives exchange, clearing house, central depository, listed corporation or any other person referred to in section 31zm; and

the court or arbitrator referred to in section 31zn.

For the purpose of this section, “registered Shariah adviser” means a person who is registered under any guidelines issued by the Commission under section 377 of the Capital