KUALA LUMPUR:  A key component to promoting integrity and market confidence is by ensuring public listed companies (PLCs) provide full, accurate and timely disclosure of financial results, risk and other information which are material to investors' decisions.

This continued to be achieved through proactive surveillance and monitoring of corporate disclosures and practices, and financial reporting of PLCs, the Securities Commission (SC) said in its 2022 Annual Report.

Towards ensuring that its surveillance activities remain relevant and effective, the SC continuously reviewed and where appropriate, enhanced and refined its approaches taking into consideration, among others, emerging market trends as well as concerns in respect of corporate behaviour and conduct.

The report said surveillance activities throughout 2022 involved the review and assessment of 442 matters.

This was triggered via announcements and news articles, as well as complaints received by the SC in relation to 277 PLCs for possible violations of securities laws.

The SC, in the course of its reviews, engaged with the directors, officers, statutory auditors and other professionals involved in the affairs of 23 PLCs.

Thematic reviews were carried out to identify emerging risk areas that may impact the capital market.

Due to the spill-over effects of the Covid-19 pandemic, the SC assessed PLCs' financial health for potential increase in credit risks and corresponding impact on the capital market.

Credit risk modelling, pertinent financial data and ratios were applied to determine vulnerable sectors and PLCs with high credit risk as triggers for further assessment.

Further, an in-depth review was also conducted on PLCs with low credit risk but large debts.

Overall, while there did not appear to be an alarming sign of deteriorating credit health in PLCs, it was observed that escalating external challenges affecting the capital market, such as the strengthening US dollar, prolonged geopolitical tensions, disrupted global supply chain as well as the rising cost of inputs may put pressure on the liquidity risk for companies with large debt.

This situation will continue to be monitored to manage and mitigate any potential risk or impact on the capital market.

Following the introduction of the temporary relief measures which had allowed PLCs to increase the general mandate limit under the Bursa Listing Requirements.

Matters of concern were identified and corporate surveillance activities in 2022 were accordingly focused on new share issuances by PLCs.

This was particularly via private placement exercises and the granting of substantial options under employee share option schemes which resulted in significant issuance of new securities.