In a statement, the regulatory body for the regulation and development of capital markets said the framework will take effect through amendments to the equity guidelines.

The framework is part of a slew of capital market measures introduced by the SC to improve stock market vibrancy and reduce market friction.

Its chairman Awang Adek Hussin said the ACE Market has remained a significant source of financing within the Malaysian equity capital market, with 20 ACE Market listings raising RM1.26 billion through initial public offerings as of October 2023.

“This accelerated transfer process will benefit sizeable, qualified ACE Market PLCs by accelerating the transfer to the Main Market for greater visibility and access to a larger pool of investors, including foreign and institutional investors,” he said.

Awang Adek said transferring to the Main Market, which is the prime market for established companies, demonstrates that the ACE Market PLCs have achieved the standards in terms of quality, size, and operations.

SC also said the newly simplified and accelerated transfer process should incentivise more companies listed on the ACE Market to make continuous efforts to improve their corporate values and achieve sustainable growth for shareholders.

“Under the new accelerated transfer process, an ACE Market PLC must, among others, have a daily market capitalisation of at least RM1 billion for the past six months, and meet the profit requirements for companies seeking to list on the Main Market,” it said.

The revised equity guidelines that will facilitate the transfer are available at https://www.sc.com.my/regulation/guidelines/equity