12 July 2020

What is Bursa Malaysia's PN17 status???

Under the rules set out by Bursa Malaysia, there are clear, comprehensive and accessible rules which govern, among others, the listing of issuers and products on local equity markets, and the obligations of the issuers post-listing, the trading, clearing and settlement of our products, the admission and post-admission obligations of market participants.




And, one of the popular yet not-so-glorify words is PN17 - which stands for Practice Note 17. There are a total of 32 Practice Notes (although some of them already removed) as listed on the website.


What does PN17 mean?

This Practice Note sets out the criteria in relation to the financial condition of a listed issuer, which if triggered will give rise to an obligation for the listed issuer to comply with the provisions of this Practice Note.


What are the triggering criteria?
  1. the shareholders’ equity of the listed issuer on a consolidated basis is 25% or less of the share capital (excluding treasury shares) of the listed issuer and such shareholders’ equity is less than RM40 million;

  2. receivers or managers have been appointed over the asset of the listed issuer, its subsidiary or associated company which asset accounts for at least 50% of the total assets employed of the listed issuer on a consolidated basis;

  3. a winding-up of a listed issuer’s subsidiary or associated company which accounts for at least 50% of the total assets employed of the listed issuer on a consolidated basis;

  4. the auditors have expressed an adverse or disclaimer opinion in the listed issuer’s latest audited financial statements;

  5. the auditors have highlighted a material uncertainty related to going concern or expressed a qualification on the listed issuer’s ability to continue as a going concern in the listed issuer’s latest audited financial statements and the shareholders’ equity of the listed issuer on a consolidated basis is 50% or less of share capital (excluding treasury shares) of the listed issuer; or

  6. a default in payment by a listed issuer, its major subsidiary, or major associated company, as the case may be, as announced by a listed issuer pursuant to paragraph 9.19A of the Listing Requirements and the listed issuer is unable to provide a solvency declaration to the Exchange.

Source: TheStar on 14 July 2010


Side Note:
  • shareholders’ equity” refers to the equity attributable to equity holders of the listed issuer;
  • total assets employed” must be based on the listed issuer’s latest audited or unaudited financial statements;

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[Update on 16 April 2020]
"In view of the current trying time, the Securities Commission Malaysia (SC) chairman Datuk Syed Zaid Albar announced that Bursa Malaysia will temporarily suspend Practice Note 17 (PN17) or Guidance Note 3 (GN3) classification on companies which financial positions slip into the status.
The relief measures for the suspended criteria are from April 17, 2020 to June 30, 2021 to companies."
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