SC Says Corporate Takeovers Are Legal, Clarifies Limits Amid ‘Corporate Mafia’ Claims
KUALA LUMPUR: Securities Commission Malaysia has stressed that corporate takeovers and share acquisitions are lawful activities under existing regulations, amid heightened attention over allegations of a “corporate mafia” operating within the market.
Its chairman, Mohammad Faiz Azmi, said the regulator’s mandate is confined to enforcing securities and capital market laws, and does not extend to criminal matters such as intimidation, coercion or extortion.
He emphasised that public perception or speculation alone does not constitute a breach of securities law, noting that enforcement action can only be taken when there is clear evidence of wrongdoing under the relevant legislation.
“Buying and selling shares, or attempting to take over a company, is not a crime if done in accordance with our rules,” he said.
Faiz further clarified that allegations involving threats or harassment linked to corporate dealings fall under the jurisdiction of law enforcement authorities, particularly the police, rather than the SC.
“When intimidation or coercion is alleged, these are matters for agencies with criminal enforcement powers,” he added.
The issue has gained traction following reports highlighting questionable share transactions and takeover activities involving connected individuals. However, such allegations have been denied by the Malaysian Anti-Corruption Commission.
Faiz cautioned against rushing to conclusions, stressing that regulatory action must be based on thorough investigations, including data analysis and witness interviews, to ensure fairness and due process.
He also warned that premature or unverified claims could harm companies and undermine confidence in the market.
At the same time, he said the SC continues to strengthen its enforcement capabilities through enhanced technological tools and closer collaboration with other agencies, including Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission.
The clarification highlights the distinction between regulatory oversight and criminal enforcement, while reaffirming the SC’s role in maintaining orderly and transparent capital markets.
-wilayah.com.my
