Rules Making Process 2

In order to ensure quality, relevance and adequacy of our rules, amendments proposed are subject to a rigorous rule amendment process. Generally, the key steps are as follows:

• In formulating rule amendments, we consider, amongst others, the regulatory objectives to be achieved, concerns to be addressed and the implications of the proposed rule. We will benchmark our rules to those of other more developed markets so that our rules are on par with international standards, where applicable.

• We circulate the draft rule amendments for thorough review and discussion by relevant parties internally before issuing the same for external consultation, by way of either an industry or public consultation. In a public consultation, the draft rule amendments will be posted on Bursa Malaysia's website to seek public comments or feedback for our consideration. Typically, a public consultation is done only for major rule changes, which may have a significant impact to the capital market and investors at large such as the Listing Requirements. On the other hand, an industry consultation will be undertaken in respect of proposed rule amendments which are generally more technical in nature, impacting a specific segment of the market participants only such as the business rules. The consultation process ensures that the rules are clear, practical and are aligned with stakeholders’ expectations.

• After taking into account industry and public feedback, we will finalise the draft rule amendments, procure internal management approval and in accordance with the law, submit the same to the Securities Commission Malaysia for approval.

• The new rule amendments are then implemented after the Securities Commission Malaysia’s approval is procured.