BURSA MALAYSIA - CODE OF ETHICS

TABLE OF CONTENT
1.0 2.0 3.0 4.0 5.0 INTRODUCTION PRELIMINARY REPORTING OF VIOLATION(S) OF THE CODE ETHICS COMMITTEE THE CODE OF ETHICS 5.1 CONFIDENTIAL INFORMATION 5.2 SECURITIES AND FUTURES TRANSACTION (Prohibition/Secrecy/Offences) 5.3 CONFLICT OF INTEREST 5.4 GIFTS, GRATUITIES AND/OR BRIBES 5.5 DISHONESTY/GENERAL CONDUCT 5.6 SEXUAL HARASSMENT 5.7 GENERAL COMPLIANCE WHISTLE BLOWER DUE INQUIRY PENALTY APPEAL

PAGE 2 2 3 5 5 5 6 6 7 8 9 10 10 12 12 12

6.0 7.0 8.0 9.0

BURSA MALAYSIA - CODE OF ETHICS

1.0

INTRODUCTION
Bursa Malaysia owes a statutory duty to the public to always act in the public interest and to maintain a fair and orderly capital market. Adherence to ethical values will create and promote an environment of mutual trust, consideration for fellow employees and responsible behaviour. Hence, personal integrity, honesty, discipline, commitment to act in Bursa Malaysias best interest and transparency are vital to making a set of code of ethics for Bursa Malaysia successful. The following was formulated to represent Bursa Malaysias Code of Ethics (hereinafter referred to as the Code). Kindly read the following material carefully, as it serves to assist in defining the ethical standards and conduct at work required at Bursa Malaysia. This Code is to be interpreted within the framework of the laws and customs of Malaysia besides being read in line with Bursa Malaysias directives, guidelines and policies, as issued from time to time. The reputation of Bursa Malaysia rests on the good judgement and conscience of each Employee. As such, our actions must demonstrate that we live by the letter and spirit of these values. Bursa Malaysia is serious about being an ethical organisation. Violation(s) of the Code will not be tolerated and will result in appropriate disciplinary action being taken including terminating the services of the employee concerned. Each Employee has a duty to: (i) read and understand our Code of Conduct; and (ii) promptly report suspected violations and concerns about any situation that could violate the Code and Bursa Malaysias policy

2.

PRELIMINARY
2.1 Definition For the purpose of the Code, and unless the context otherwise requires:Authorised Persons Means personnel who are designated and authorised to receive reports in respect of violations of the Code i.e Chief Executive Officer, Heads of Business Unit, Heads of Functional Group and Head Group Human Resources. Means Bursa Malaysia Berhad and its group of companies.

Bursa Malaysia

Ethics Committee Chaired by the Chief Executive Officer and will Members consist of a minimum of 4 members including Head GHR in an advisory capacity.
2

BURSA MALAYSIA - CODE OF ETHICS

Employee

(Note: The Ethics Committee members may be replaced or appointed from time to time by the Chief Executive Officer). Means all levels of employees of Bursa Malaysia, its group of companies including such persons who are on contract, secondment, apprenticeship, attachment or any persons by whatever description under the supervision of Bursa Malaysia and its group of companies whether remunerated or otherwise. Means Group Malaysia. Human Resources, Bursa

GHR GIA 2.2 Interpretation i.

Means Group Internal Audit, Bursa Malaysia

Words importing the masculine shall be deemed and taken to include the feminine and neuter gender and vice versa. Words importing the singular shall be deemed and taken to include the plural and vice versa.

ii. All references to statutes include amendments or modifications to such statutes and re-enactments thereof including the rules, regulations and all other subsidiary legislation in relation thereto. 2.3 Responsibilities For All Employees Ethical behaviour at Bursa Malaysia is required of all Employees. All Employees of Bursa Malaysia are required to: i. observe a basic code of ethical conduct in the workplace. ii. uphold personal integrity and to adhere to the requirements of the law and to observe recognised standards of fair dealing. iii. be dedicated and loyal to Bursa Malaysia. iv. be responsible for conducting their work in a manner consistent with Bursa Malaysias directives, guidelines and policies as issued from time to time. Any Employee who suspects or who has knowledge of possible violation of the Code should immediately bring the matter to the attention of Authorized Persons designated by Bursa Malaysia. All matters so reported shall be treated and dealt with in complete confidentiality.

3.

REPORTING OF VIOLATION(s) OF THE CODE

3.1 Violation of the Code affects the integrity of Bursa Malaysia as well as the integrity of its Employees. Not only does it lead to an unpleasant working environment, but it can also lead to serious legal and financial implications for
3

BURSA MALAYSIA - CODE OF ETHICS

Bursa Malaysia. Bursa Malaysia is dependant on all Employees to report and to not condone any violation(s) of the Code. 3.2 An Employee who knows of a violation of the Code that has been committed by another Employee is under an obligation to report such violation to Authorised Persons i.e Heads of BU/FG or any Ethics Committee member. Appropriate action will be taken on reported violation(s) of the Code. If an issue cannot be resolved at the certain level, it shall be escalated to the next higher level. This is critical to the integrity of Bursa Malaysia.

3.3

Complaints, grievances or reported violation(s) shall be handled and resolved according to the Escalation procedure specified below: Level Level 1 Level 2 Authority Immediate supervisor Heads of Business Unit /Function Group. Head, GHR Chief Executive Officer Action To resolve issue within 5 working days from date of receipt of the written complaint. To resolve the issue within 4 working days from date of receipt of the written complaint.

Level 3 Level 4

To resolve the issue within 4 working days from date of receipt of the written complaint. To make a final decision to resolve issue within 4 working days from date of receipt of the written complaint. The Chief Executive Officer may form the Ethics Committee to assist in resolving the issue.

Note: The duration is an indicative period. Certain cases may take longer than the others based on the complexity of the cases.

Issues, complaints and grievances shall be handled and resolved according to the specification as illustrated above. If an issue cannot be resolved at a certain level, it shall be escalated to the next higher level. If an issue involved the employee's immediate supervisor (at Level 1), the complaint or grievance must be submitted to the next higher level (i.e. Head of Business Unit/ Function Group) for resolution.

3.4

Guidelines Guidelines to be observed when handling complaints and grievances: 3.4.1 interview the employee to understand the whole problem at hand,
4

BURSA MALAYSIA - CODE OF ETHICS

3.4.2 3.4.3

do not interrupt when the employee is talking, ask relevant questions to gather more information and facts about the issue, ensure there is a common understanding of what the issue is about, do not jump to conclusion, verify all facts and information provided by the employee independently.

3.4.4 3.4.5 3.4.6

3.5

Retribution against Employees who report violation(s) of the Code is in itself unethical and inconsistent with ethical standards. Bursa Malaysia views such complaints about retribution just as seriously as any other violation(s) and will investigate and act accordingly in the same manner as that involving a breach of the Code.

ETHICS COMMITTEE
4.1 It is essential to form an Ethics Committee in Bursa to handle issues relating to ethics that are complex in nature and to adopt sound decision making process. The Ethics Committee will be headed by the Chief Executive Officer and will consist of a minimum of four (4) members appointed by the Chief Executive Officer including the Head of GHR in an advisory capacity. For the purpose of discharging the relevant ethical issues across Bursa, the Chief Executive Officer may appoint or adopt relevant expertise within Bursa to give his or her views to the committee. 4.2 Responsibilities of the Ethics Committee are: 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 To render advisory opinions and to provide interpretation with respect to the provisions of the Code of Ethics. Receive and evaluate anonymous complaints, letters or reports. Review and decides on any issues relating to ethics. Make decisions on such issues relating to ethics that may arise. Make recommendation on any penalties that may arise in respect of any breach of ethics or breach of this Code. Deliberate on any other complex issues brought to its attention.

BURSA MALAYSIA - CODE OF ETHICS

THE CODE OF ETHICS

5.1 Confidential Information In the course of employment, employees may come into possession of confidential or sensitive information and in particular, confidential and sensitive information relating to Bursa Malaysia and or its business associates (confidential information). All employees are prohibited from disclosing any confidential information unless authorised to do so by their relevant Heads. It is therefore pertinent that all employees exercise caution and due care in handling any information obtained in the course of their duties. Employees have a contractual and moral responsibility to safeguard any confidential information to which they may have access in the course of their employment. The improper and unauthorised use of such confidential information is totally prohibited. The following are principles and procedures of ethical conduct for Employees when dealing with and preserving confidentiality in regard confidential information:4.2.7 Where possible, the Employee(s) making the disclosures shall mark as confidential all material the employees regards as embodying confidential information, so that recipients are aware that such information is to be treated as confidential; Employees shall treat such information in strict confidence, not disclose such information to any unauthorised person, take all necessary precautions to maintain such confidentiality and not use it for any purpose other that for what has been authorised; Employees who require and/or have access to confidential information shall not disclose the whole or any part of the information or have any discussions with any other unauthorised person in relation to the information;

4.2.8

4.2.9

4.2.10 When transferring confidential records, data or such information to other persons or entities, the Employee shall notify the recipient of the confidentiality of the said information; 4.2.11 No Employee shall make use of any confidential information obtained directly or indirectly in the course of his duties for his own personal use (whether or not it is for financial or other gain), unless duly authorised; 4.2.12 No Employee shall provide or transfer any confidential information obtained directly or indirectly in the course of his duties to another person for that other persons personal use (whether or not it is for financial or other gain), unless duly authorised;

BURSA MALAYSIA - CODE OF ETHICS

4.2.13 No Employee shall use any confidential information as a basis for any securities or other transactions for himself or make recommendations to another to enter into such securities or other transactions based on such information; 4.2.14 Employee shall not during or after cessation of his employment with Bursa Malaysia, disclose confidential information to any other person within or outside Bursa Malaysia unless such information has subsequently (but prior to the Employees above disclosure) entered the public domain. 5.2 Securities and Futures Transaction (Prohibitions/Secrecy/Offences)-Reference is made to the Securities Transaction Policy for Employees of Bursa Malaysia Berhad (Securities Transaction Policy) posted in the Employee Information Site (EIS) 5.2.1 Each Employee of Bursa Malaysia has a duty to be conversant with the provisions of Part V, Division 1 of the Capital Markets and Services Act 2007, Part V, Division 2 of the Capital Markets and Services Act 2007, Part IV and Part V of the Securities Industry (Central Depositories) Act 1991 (SICDA), and not directly or indirectly involve themselves in any action or activity that amounts to a violation of such provisions by the Employees or another person(s); No Employee of Bursa Malaysia shall engage, whether directly or indirectly, in trading in futures contract; All Employees of Bursa Malaysia must read, understand and comply with the Securities Transaction Policy prior to any trading in securities listed on Bursa Malaysia Berhad. Employees who breach the Securities Transaction Policy, will subject themselves to strict disciplinary action including dismissal.

5.2.2 5.2.3

5.2.4

5.3

Conflict of Interest 5.3.1 The term conflict of interest describes any circumstances that could cast doubt on an Employees ability to act with total objectivity with regard to Bursa Malaysias interests and statutory duties. No Employee shall knowingly place himself in a position that would be in conflict with the interest or statutory duties of Bursa Malaysia. Employees in avoiding situations of conflict of interest shall:a) Ensure that their personal financial circumstances and transactions do not jeopardise their independent judgement or adversely affect their job performance; b) Not hold any financial or other interest, either directly or indirectly in any stock broking or futures broking company or act for or on behalf of any stock broking or futures broking company ; c) Not hold any financial or other interest either directly or indirectly in any contractor, vendor or party having or is likely to have business dealings with Bursa Malaysia.
7

BURSA MALAYSIA - CODE OF ETHICS

d) not have any direct or indirect involvement in other employment (remunerated or otherwise) except with the prior written consent of the Management of Bursa Malaysia 5.3.2 Whilst it is impossible to specify all situations where a conflict of interest may arise, the following are example of situations that constitute a conflict, and shall be reported to an Authorised Person of Bursa Malaysia:a) any direct of indirect financial or other interest in a person or entity which has dealings with Bursa Malaysia or its subsidiaries where the Employee can influence decisions with respect to Bursa Malaysias dealings with such person or entity; serving on the Board of Directors or employment in any capacity (with or without remuneration) with any person or body that has dealings with Bursa Malaysia; where such Employee acting in the official capacity of being a member of any tender/purchasing committee of Bursa Malaysia has a direct or indirect interest in a person or entity that has a relevant matter for consideration before the said tender/purchasing committee.

b)

c)

5.3.3

Where a conflict of interest situation arises, the Employee shall disclose in writing all potential conflict and where relevant, abstain from voting as a member of the relevant committee on any matter in which he may have an interest (direct or indirect) or where there may be potential conflict of interest. Further, where required, the said Employee shall submit a declaration of assets including any revised declarations within the time prescribed, to GHR.

5.4

Gifts, Gratuities and/or Bribes 5.4.1 It is a violation of the Code for an Employee to solicit or accept any gift or personal benefit in connection with his work at Bursa Malaysia. a) For the purpose of this provision of the Code, personal benefit here would include but are not limited to any gifts, items of legacy, fees, rebates, rewards, commissions, services, favours, offices, employment contracts, and holidays and any item where there is a likelihood that the Employee will be or will appear to have been improperly influenced the objectivity of the Employee in the performance of this duties. Any other business courtesy given in an attempt to motivate the Employee to do anything that is prohibited by law, regulation or Bursas policy

b)

5.4.2

Notwithstanding the above, the following gifts or personal advantage (provided not exceeding RM300 in total value) that are deemed as not given to influence the employees performance of duties include, :i) normal business courtesies, such as meals or other like entertainment; ii) token gifts which are occasional;
8

BURSA MALAYSIA - CODE OF ETHICS

iii) gifts presented to employees during birthdays, weddings, Hari Raya, Chinese New Year, Deepavali and Christmas or other festive occasions when gifts are traditionally exchanged; iv) remuneration received from a governmental / statutory based body or an organisation which is charitable or educational in nature for which an services outside his duties to Bursa Malaysia; vi) non-cash gifts presented to the Employees attending social functions on behalf of Bursa Malaysia; 5.4.3 Bursa Malaysia prohibits the solicitation of any gift or personal benefit of any value by an Employee of Bursa Malaysia from stock broking or futures broking company , listed companies, suppliers or any person who has any business dealings with Bursa Malaysia . This includes (but is not limited to) subscribing, purchasing or selling a security at a price or commission, which is more favourable than the price or commission afforded to a member of the public. Public interest shall prevail over any conflicting interest an employee may have. Employees should evaluate their working relationship with Bursa Malaysia to ensure that situations of conflict are avoided. To this end, an employee may consult his immediate superior for advice. An employee shall not act when he is placed in a position in which his views or judgement is likely to be biased. It is the responsibility of each employee to act and to perform his duties at Bursa Malaysia, with transparency, impartiality and objectivity.

5.4.4

5.5

Dishonesty/General Conduct 5.5.1 Employees shall not be involved in or aid or abet any activity that is a criminal offence punishable by imprisonment or one where the relevant authorities deem as an activity that requires the Employee to be placed under any legal order of restricted residence or banishment. Employees shall not be involved in or aid or abet any activity that is deemed by Bursa Malaysia to be a misconduct. Misconduct shall include without limitation to acts involving: (a) (b) use of foul or abusive language/behaviour against fellow Employees or a superior or any person having business with Bursa Malaysia use of threat or use of violence and or intimidation against another employee or persons having dealings with Bursa Malaysia in the Bursa Malaysia premises inciting religious or racial disharmony amongst Bursa Malaysia Employees or others, participating in or inciting civil commotions and unlawful strikes consumption/use of or being under the influence of alcohol or prohibited drugs/narcotics during working hours or possession, distribution or use/abuse of prohibited drugs/narcotics in Bursa Malaysias premises conviction or imprisonment for any criminal offence by a court of law
9

5.5.2

(c) (e) (f)

(g)

BURSA MALAYSIA - CODE OF ETHICS

which indicates unsuitability for the job or raises a threat to the safety, well-being or reputation of Bursa Malaysia, its Employees, customers or property (h) wilful slow-down of work or inciting others to do so or conduct that is disruptive towards fellow Employees or lawful visitors of Bursa Malaysia committing an immoral or indecent act in Bursa Malaysias premises wilful insubordination or disobedience whether alone or on combination with others to any lawful and reasonable instructions of a superior or those acting under the instruction of a superior, which the Employee is required to follow engaging in activities involving the unauthorised use, sale, transfer, conversion or defacement Bursa Malaysia property or that of a fellow Employee, bringing to or being in possession of or distribution of pornographic material during working hours or in Bursa Malaysias premises, organising of or participating in any gambling activity on Bursa Malaysia premises or doing so during working hours. money laundering activities during working hours or in Bursa Malaysias premises, use of property or facilities of Bursa Malaysia for purposes of committing or attempting to commit or preparing to commit a misconduct. money lending activities during working hours or in Bursa Malaysias premises.

(i) (j)

(k)

(l) (m) (n) (o)

(p) 5.5.3

Discovery Any Employee who becomes aware of any such activities as above is required to report such matters immediately to the Authorised Person(s) who will then refer the matter to GHR who is empowered to conduct a full investigation. The management further reserves the right to report any actions or activity suspected of being of a criminal nature to the police or other relevant authority. Employees should not attempt to conduct individual investigations or interviews/ interrogations in order to determine whether or not a suspected activity is, in fact, improper.

5.6

Sexual Harassment 5.6.1 Sexual harassment by or of any person(s) employed by Bursa Malaysia, is unacceptable and strictly prohibited. Employees are to be guided by the provisions contained in the Code of Practice on the Prevention and Eradication of Sexual Harassment In the Workplace issued by the Ministry
10

BURSA MALAYSIA - CODE OF ETHICS

of Human Resource, Malaysia. A copy of the said code is available upon request, from GHR;

5.6.2

Escalation Process for Sexual Harassment Due to the sensitive and personal nature of sexual harassment complaints and to protect victims from further embarrassment, all reports/complaints shall be treated in strictest confidence. Complaints and grievances shall be handled and resolved according to the escalation procedure prescribed in 3.3 above.

5.7

General Compliance 5.7.1 Outside Interest No employee may engage in an outside interest that would encroach on his time and / or attention that is required to be devoted to Bursa Malaysia. 5.7.2 Property, Equipment and Use of Facilities Employees shall not cause any damage to property whether belonging to Bursa Malaysia or to other Employees located within the premises of Bursa Malaysia or any use of any such property to commit any criminal acts or any act of misconduct as determined by Bursa Malaysia. Properties of Bursa Malaysia assigned to Employees are strictly to be utilised for work related purposes only. Abuse or misuse of the properties so assigned is a serious violation of the Code. 5.7.3 Accurate Representation of Information It is the responsibility of all employees to ensure that the public or any party dealing with Bursa Malaysia with whom the Employee is communicating with on behalf of Bursa Malaysia, receives accurate and authorised information only. 5.7.4 Proper Recording and Disbursement of Funds and Other Assets Funds and other assets of Bursa Malaysia are to be used for legal and proper business purposes only. No unauthorised, false, improper or misleading records or entries shall be made in the books and records of Bursa Malaysia. 5.7.5 News Release No Employee of Bursa Malaysia is authorised to make any statements about Bursa Malaysia to the news media or the public without prior approval of the Chief Executive Officer or such other designated personnel or Authorised Persons of Bursa Malaysia.
11

BURSA MALAYSIA - CODE OF ETHICS

5.7.6

Religious/Racial/Sexual Discrimination No Employee of Bursa Malaysia shall practice any form of discrimination or prejudice in the workplace.

WHISTLE BLOWER PROCEDURE

All employees of Bursa Malaysia are encouraged to report to their management promptly any breach or suspected breach of any law or regulation, including business principles and company policies and guidelines. Any employee who wishes to make a report regarding any irregularity shall be able to do so without jeopardising its position at Bursa Malaysia. Each report shall be treated strictly confidential and promptly investigated. This procedure explains the rights and obligations of a Bursa Malaysia employee who makes a report of a breach within Bursa Malaysia. 6.1 Rights and Obligations of Employees Filing a Report Any employee is encouraged to report a breach to its manager or management, provided that such employee reasonably believes that the breach has taken place, is taking place or will take place. If an employee does not wish to make a report with his/her immediate manager or management, or no action has been taken at that level, the employee may make a report to the Chief Executive Officer (CEO) of Bursa Malaysia by sending him a mail or email. The CEO will send a copy of any report received to the Chairman of the Board of Directors within one week of the receipt thereof. If an employee has concerns regarding a breach concerning the CEO or the Board of Directors, or a failure to act on a report, the employee may contact the Chairman of the Board of Directors by sending him a mail or email. If an employee has concerns regarding a breach concerning the Chairman of the Board of Directors, or a failure to act on a report, the employee may contact the Chairman of the Audit Committee by sending him a mail or email. Save when the CEO, the Chairman of the Board of Directors, the Chairman of the Audit Committee, respectively, has refused to investigate the matter and all alternatives for internal consultation have been exhausted, an employee shall avoid any form of external or internal publicity concerning any breach he/she intends to report. Any employee, who makes a report of a breach which he/she reasonably believes to be true, and from which breach he/she has no personal gain, will be given protection under this whistle blower procedure. This implies that Bursa Malaysia will not discharge, demote, suspend, threaten, harass or in any manner discriminate against any employee in the terms and conditions of employment based upon any lawful actions of such employee with respect to the reporting of such a breach. The submission of a false or frivolous report may have consequences for the employee and the employee may be liable for damages towards anyone who suffered from such false report. 6.2 Obligations of Bursa Malaysia and its Management
12

BURSA MALAYSIA - CODE OF ETHICS

Bursa Malaysia expects management at all levels in the company to handle all matters concerning any breach seriously, confidentially and promptly. Evidence and documentation shall be preserved as per the instructions of respectively, the Chairman, the CEO, and the Chairman of the Audit Committee. Management at all levels at Bursa Malaysia is obligated to fully co-operate with and assist the Chairman, the CEO, and the Chairman of the Audit Committee, and whomever appointed to investigate the breach, in the investigations. It is the managements responsibility to be able to clearly demonstrate that reports are treated seriously, promptly and confidentially. Any person receiving a report pursuant to this procedure will, when employee details are available, acknowledge receipt of the report to the employee within five working days of its receipt and maintain a log of all reports received, tracking their receipt, investigation and resolution. Copies of reports and such log will be maintained in accordance with applicable legal requirements. 6.3 Confidentiality and Anonymity All reports of a breach will be dealt with in a confidential manner. Confidentiality will be maintained to the fullest extent possible, consistent with the need to conduct an adequate investigation of the report. Bursa Malaysia encourages employees to report any breach directly, openly and in accordance with this procedure to their manager, management or the CEO, Chairman or Chairman of the Audit Committee, as appropriate. It is possible to file a report anonymously although this may hinder or complicate investigations and possibly prevent appropriate action from being taken. 6.4 Delegation The Chairman, the CEO, and the Chairman of the Audit Committee may delegate the responsibility for implementing the day-to-day running of this whistle blower procedure to the Company Secretary or one or more other officers of the company. Such officer (s) has the authority to investigate. The officer reports on a day-to-day and a case-by-case basis to the Chairman, the CEO, and the Chairman of the Audit Committee, as appropriate.

7.

DUE INQUIRY
Upon being notified of a violation of the Code, the Chief Executive Officer or persons delegated by the Chief Executive Officer shall conduct an inquiry into such breach, according to procedures established for such an inquiry. The above inquiry and disciplinary proceedings shall be co-ordinated by GHR in accordance with Bursa Malaysias practices.

8.

PENALTY
8.1 The Chief Executive Officer or persons delegated by the Chief Executive Officer, shall have the power where appropriate, to impose one or more of the following penalties in the event of breach and/or violation of the code of ethics:a) b) oral warning; written warning;
13

BURSA MALAYSIA - CODE OF ETHICS

c) d) e) f) g)

stoppage/revision of increment; suspension without salary; demotion; dismissal; any other sanctions as may be deemed appropriate

9.

APPEAL
9.1 In the event disciplinary proceedings have been concluded and a decision of dismissal has been made in respect of a breach of this policy, an Employee may appeal against such decision by notifying Group Human Resources (GHR) of his or her intention to appeal within fourteen (14) days from receipt of notification of the decision. Upon being notified of an appeal, the Chief Executive Officer will initiate and commence the Appeal Committee meeting for a hearing of the appeal. The Appeal Committee will be headed by the Chief Executive Officer and will consist of at least four members, including the Head of GHR in an advisory capacity. Should the appeal be successful the Employee will be reinstated to his/her former position.

9.2

14