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Bernama: The Remisiers Association of Malaysia (Persama) has urged Bursa Malaysia to consult investment banks before putting a company under Practice Note 17 (PN17) status, said president Sam Ng Soon Lee.

“We (Persama) would like to suggest that next time Bursa Malaysia wants to put any company under PN17 status, they need to consult an investment bank first. This will protect investors and it will be fair to the listed company,” he said after the association's AGM on Saturday.

PN17 refers to a company in financial trouble because successive losses have eroded its shareholders' funds or the company has ceased its business operations. A PN17 company is required to regularise its condition within a certain timeframe, failing which the stock would be suspended from trading and face delisting procedures.

According to Ng, more than 100 companies have been delisted. On the outlook for the local bourse, he said: “It is positive provided that the policy on PN17 is amended. PN17 policy has affected investor confidence.”

Countering The BS: Really hate it when people speak and they bypass their faculties. People think I say mean things, no, I just like to put idiots in their place or else idiots will be running riot. I can be an idiot too, just call me on it when I do stupid stuff. This is the Remisiers association, and their advice to Bursa is to appoint or talk to an investment bank first before putting a company to PN17 ???? I am sure the view is NOT shared by the majority of remisiers.

The Bursa has clear guidelines on when a company goes into PN17, it is not arbitrary or without warning. You need to fuck up a company's business model for a prolonged time to enter PN17. The Bursa consulting an investment bank before putting a company into PN17 is like the Police being asked to consult Bandaraya before putting them in jail. Where is the logic? The Bursa is the regulatory body, investment bankers do something entirely different. If anything, its the company themselves who need to consult investment bankers before they get flung into PN17 - now look for the idiot in the above setting.

Putting more companies into PN17 does NOT rob the market of its confidence, if anything it restores confidence to the maketplace as regulations are properly imposed and carried out, not just wishy-washy rules being skirted or never used in reality. In fact, I still feel companies are still not being delisted quickly enough even now. You want 600 decent companies rather than 1200 so-so companies. The longer these dying companies stay around, most will end up being syndicated plays on their last legs - only if you want that scenario to dominate the local markets, then by all means prolong the PN17s.

As remisiers, what the fuck are you doing recommending or allowing your clients to buy companies close to being thrown PN17 tickets? Read up, do more fucking research, make your clients feel that the 0.75% commission is worth something. Protecting PN17 or delaying or prolonging the PN17 will only create more bad companies or prolonging the life of useless dying companies. Companies don't get dumped into PN17 overnight, there are plenty of warnings signs - did you do the good thing and tell your clients that they are buying or holding shares in companies close to being dumped into PN17?

We always hear of the Bursa being too lenient with too many "so-so" companies being listed, staying listed. Now they are being more proactive, stay out of their path.