# Securities Commission Malaysia: Mandate and Regulatory Powers

> The Securities Commission Malaysia (SC) is the statutory regulator of Malaysia's capital market, established under the Securities Commission Act 1993 and reporting to the Minister of Finance.

- Category: finance
- Language: en
- Status: published
- Updated: 2026-08-01
- Canonical: https://negaraku.md/en/finance/securities-commission-malaysia

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When you buy a unit trust, invest through an equity crowdfunding platform, or trade a stock on Bursa Malaysia, one body sets the rules behind all of it: the Securities Commission Malaysia. It is the single statutory gatekeeper for the country's capital market — and knowing exactly where its authority starts and stops saves a lot of confusion.

## What is the Securities Commission Malaysia?

The SC is a self-funded statutory body established on 1 March 1993 under the Securities Commission Act 1993 (SCA). Its job, in its own words, is "to regulate and develop the Malaysian capital market" — the market where companies raise long-term funds and where investors buy securities, derivatives and capital-market products.

Under the SCA, the SC reports to the Minister of Finance, and its accounts are tabled in Parliament every year. Because it is self-funded (largely through market levies and fees), it does not draw on the annual government budget the way a ministry department would. It is led by an Executive Chairman and members appointed by the Minister.

## Which laws does the SC administer?

The SC does not operate on a single statute. It administers three principal Acts, each covering a different slice of the market.

| Law | Focus |
| --- | --- |
| Securities Commission Act 1993 (SCA) | Establishes the SC; sets its functions, powers and enforcement authority |
| Capital Markets and Services Act 2007 (CMSA) | Governs capital-market activities: licensing, fundraising, products, market conduct |
| Securities Industry (Central Depositories) Act 1991 (SICDA) | Governs the central depository system for holding and transferring securities |

Alongside these, the SC issues detailed guidelines — for equity products, Islamic capital-market products, real estate investment trusts (REITs), sukuk, and recognised markets — that it "actively updates and enforces."

## What does Section 15 of the SCA require the SC to do?

Section 15 of the SCA lists 14 statutory functions. Taken together, they define the SC's dual role as both regulator and developer of the market. Key ones include:

- Advise the Minister on all matters relating to the securities and futures industries.
- Regulate all matters relating to securities and futures contracts.
- Regulate take-overs and mergers of companies.
- Regulate unit trust schemes.
- Supervise and monitor exchanges, clearing houses and central depositories.
- Licence and supervise licensed persons.
- Encourage self-regulation by professional associations.
- Suppress illegal, dishonourable and improper practices in dealings in securities and futures trading, and maintain investor confidence.

## What sits inside the SC's remit?

In practice, the SC's jurisdiction covers the full capital-market chain — the venues, the intermediaries, the products and the conduct.

- **Exchanges and infrastructure** — Bursa Malaysia and its clearing and depository entities.
- **Intermediaries** — fund management companies, dealers, advisers and other CMSA-licensed persons.
- **Collective investments** — unit trusts, REITs and other managed products.
- **Fundraising and disclosure** — IPOs, corporate bonds, sukuk and take-over rules.
- **Recognised markets (fintech)** — equity crowdfunding (ECF), peer-to-peer (P2P) financing and digital-asset exchanges (DAX).
- **Market conduct** — insider dealing, market manipulation and other misconduct.

The SC extended its rules to alternative finance in stages. Its equity crowdfunding guidelines took effect on **10 February 2015**, letting an eligible issuer raise up to **RM3 million within a 12-month period**, with a 6-day cooling-off window for investors. It followed with a peer-to-peer financing framework announced on **13 April 2016**: P2P operators must be locally incorporated with a minimum paid-up capital of **RM5 million**, and retail investors are advised to cap exposure at **RM50,000** at any one time. Eligible P2P issuers range from sole proprietorships and partnerships to unlisted public companies.

Digital-asset exchanges were brought in later. Following the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, which came into force on **15 January 2019**, and revised Guidelines on Recognized Markets issued on **31 January 2019**, a firm that wants to operate a DAX must register with the SC as a Recognized Market Operator. Only entities registered by the SC may run a digital-asset exchange in Malaysia.

## Where does the SC's authority end?

A common mix-up is assuming the SC oversees anything to do with money or finance. It does not. The banking and insurance system sits with a different regulator, and consumer protection for deposits sits with another body again.

| Area | Regulator / body |
| --- | --- |
| Capital market (securities, derivatives, fund management, exchanges, ECF/P2P/DAX) | Securities Commission Malaysia |
| Banks, insurers and takaful operators | Bank Negara Malaysia |
| Deposit protection; takaful and insurance benefit protection | PIDM |

PIDM (Perbadanan Insurans Deposit Malaysia) explicitly frames itself as complementing Bank Negara Malaysia, which is "the primary supervisor and regulator" of banks and insurers, while PIDM administers the deposit insurance system and the takaful and insurance benefits protection system. None of that falls under the SC. So a savings account, a life insurance policy or a bank deposit is outside the SC's mandate — but a unit trust, a corporate bond or a crowdfunding investment is squarely within it.

## What's next

If you are raising capital or offering a capital-market product, check the specific SC guideline that applies (equity, sukuk, REITs or recognised markets) and confirm any licensing requirement under the CMSA before you act. If your question is about a bank account, insurance policy or deposit safety, you are looking for Bank Negara Malaysia or PIDM instead. For the underlying rules cited here, the SC's own regulation portal and the Securities Commission Act 1993 are the authoritative starting points.

## Sources

- About the SC — https://www.sc.com.my/about/about-the-sc (Securities Commission Malaysia)
- Securities Commission Malaysia — Overview — https://www.sc.com.my/about (Securities Commission Malaysia)
- Regulation — https://www.sc.com.my/regulation (Securities Commission Malaysia)
- Securities Commission Act 1993, Section 15 — Functions of the Commission (official statute text) — https://www.ssm.com.my/acts/fscommand/a0498s0015.htm (Percetakan Nasional Malaysia Berhad (PNMB-LawNet), hosted on ssm.com.my)
- SC releases new Guidelines to facilitate equity crowdfunding — https://www.sc.com.my/resources/media/media-release/sc-releases-new-guidelines-to-facilitate-equity-crowdfunding (Securities Commission Malaysia)
- SC introduces regulatory framework to facilitate peer-to-peer financing — https://www.sc.com.my/resources/media/media-release/sc-introduces-regulatory-framework-to-facilitate-peer-to-peer-financing (Securities Commission Malaysia)
- List of Registered Digital Asset Exchanges — Recognized Markets — https://www.sc.com.my/regulation/guidelines/recognizedmarkets/list-of-registered-digital-asset-exchanges (Securities Commission Malaysia)
- About PIDM — https://www.pidm.gov.my/general/faqs/about-pidm (Perbadanan Insurans Deposit Malaysia (PIDM))

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