The motion to withdraw the bill was put forward by deputy finance minister Steven Sim to Dewan Rakyat Speaker Johari Abdul.

The amendment to the Capital Markets and Services Act 2007 (Act 671) included proposals to allow for the setting up of regulatory subsidiaries to fulfil their obligations under the Act.

Amending Section 21 of the Act would enable regulatory subsidiaries to have the power to take action without preventing other subsidiaries from taking action when needed as well as allowing the Securities Commission (SC) to change, add or cancel estimates made.

The amendment was also intended to insert the new Section 21A to authorise the SC to order a holding company in Bursa Malaysia to set up a regulatory subsidiary if required.

Other amendments include Section 26 to expand the SC’s power to generate orders for regulatory subsidiaries and Section 376 to expand the scope of indemnity for regulatory subsidiaries and any party action on their behalf.