Investor protection within the securities industry / Bhuvaneswari Krishnamurthy
Laws are nonnally enacted with reference to social objectives. The rules and regulations that govern the Securities lndustry have been enacted with a view to providing Investor Protection. The objective of this work is to examine the body of laws that affect an individual investor in making his i...
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| Format: | Thesis |
| Published: |
1997
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| Online Access: | http://studentsrepo.um.edu.my/9459/4/Investor_Protection_within_the_Securities_Industry.pdf http://studentsrepo.um.edu.my/9459/ |
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| Summary: | Laws are nonnally enacted with reference to social objectives. The rules and
regulations that govern the Securities lndustry have been enacted with a view
to providing Investor Protection. The objective of this work is to examine the
body of laws that affect an individual investor in making his investment
decisions.
This work is centered around the provisions contained in the Malaysian
Companies Act 1965, the Securities Industry Act 1983, and the Securities
Commission Act 1993 and their impact on the Kuala Lumpur Stock Exchange.
Regulation of the Securities Industry in Malaysia only spans the last three
decades and hence reference has been made to the regulatory provisions and
case law from other jurisdictions with a longer track record than us. Examples
have been drawn from the laws of the United States because it is a forerunner
in the field of securities regulation, Australia because it is an important
regulator within the region and because our regulators have modelled our own
regulations on that of our Australian counterparts, and Singapore because of
socio-political similarities that exist between our countries, which is reflected
in the similarity of the provisions contained in the laws of both countries.
Since all laws relating to the Securities 1ndustry are either directly or
indirectly concerned with Investor Protection. this work will restrict itself to
the examination of certain key areas. ln Chapter Ill attention is focused on the
Kuala Lumpur Stock Exchange and its constituent parts with a view to
highlighting the protections afforded to the investor by the market structure.
The securities industry prevents direct access to the market by investors who
are required to channel their funds through financial intermediaries. 1n
Chapter TV this work therefore attempts to uncover whether the intermediaries
are acting in the interests of their clientele. Chapter V considers the effect of
insider trading on the market with special emphasis on the ways in which it
threatens Investor Protection. Finally Chapter VJ examines the effectiveness of
the regulatory bodies in safeguarding investor interests with specific reference
to the Securities Commission.
Based on the foregoing the writer intends to conclude that Investor Protection
ought to be the rationale behind all future securities regulation and to this end
cirtain recommendations have been made in the concluding chapter. |
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