[9223]
September 5, 1997
VIA FAX
TO: INTERNATIONAL COMMITTEE No. 30-97
RE: MALAYSIA RESCINDS NEW RULES CONCERNING SALES OF 100
DESIGNATED STOCKS
______________________________________________________________________________
The Kuala Lumpur Stock Exchange (KLSE) announced today that it was lifting the new
rule requiring sellers of the 100 component stocks of the KLSE Composite Index to pre-deliver
shares to their local broker dealer prior to placing a sale order in any of the companies. The
new rule was imposed on August 28, 1997 to curb short selling.
The KLSE’s announcement states that effective September 5, 1997 shares in the 100
stocks will trade with delivery and settlement on T + 5 pursuant to the KLSE’s rules. While the
pre-delivery rule has been rescinded, regulated short selling and securities lending and
borrowing activities are still prohibited until further notice.
Attached is a copy of the KLSE press release.
We will keep you advised of developments.
Mary S. Podesta
Associate Counsel - International
Attachment (in .pdf format)