BRUNEI DARUSSALAM STOCK EXCHANGE

The conduct of a nation’s stock exchange can act as a solid indicator of its national economic performance

Stock markets play a major role for businesses and countries as an instrumental source of capital as they are the most dynamic and organised component in a market-based financial system providing the basis for the continuous growth of the economy.

The conduct of a nation’s stock exchange can act as a solid indicator of its national economic performance by providing a source of business capital and government funds, promoting investment, as well as influencing economic activities.

AMBD is in the process of setting up a number of new systems, rules and regulations, in its capacity as a member of the Steering Committee, the Secretariat and Working Group for the establishment of the Brunei Darussalam Stock Exchange, to ensure that Brunei is not left behind in the global economy.

Working Groups

The Working Groups are divided further into three sub – Working Groups: The Working Group for Rules and Regulations (WGRR), the Working Group for Operations and Infrastructure (WGOI) and the Working Group for Promotion and Education (WGPE), the AMBD website revealed.

As its main function, the WGRR has come up with the initial draft of the stock exchange rules which include listing rules related to publicly traded corporations required to be in place and socialised to the relevant stakeholders, before the launch of the exchange.
The WGOI is said to have completed tender requirements for the new stock exchange system, including the system functionality and technical requirements. The WGPE has prepared training programmes to educate and provide more public awareness on the stock exchange.

The establishment of the Central Securities Depository (CSD) system by AMBD in May 2017 will also play a vital role in becoming a cornerstone for the development of the capital market in Brunei, and the establishment of the Brunei Darussalam Stock Exchange.
With the establishment of the stock exchange, the protection of investors is also taken into account with the Protecting Minority Investors (PMI) Reform under AMBD.

This is hoped to help increase investors, as well as the public’s confidence in undertaking any investment activities in the country, especially through the stock exchange in the future, in addition to protecting them against the misuse of corporate assets by directors through improved shareholder rights.

The PMI Reform can strengthen these minority shareholders’ rights within a company, which will give Bruneians a stronger confidence in their strengthened rights in terms of corporate governance, as shareholders will have a greater say and role in major corporate decisions and access to company information to improve market transparency and facilitate informed investment decisions.