Malaysia’s securities regulator has released guidelines for social exchange platforms, paving the way for the creation of the country’s first exchange to facilitate fundraising for social impact projects.
Platform operators must have a minimum capital of 500,000 ringgit (US$119,104) and maintain at least 500,000 ringgit of shareholders’ funds at all times.
They must retain records of their financial positions and those related to donors for at least seven years.
The guidelines stipulate that platform operators need business continuity plans that address events which pose significant risk of disrupting operations.
Securities Commission Malaysia (SC) published the guidelines on September 22.
Social exchanges will provide a “transparent fundraising avenue” for eligible social impact projects and widen the role of the capital market to support and instil trust in fundraising by non-government organisations, non-profits and charities, the SC says in a statement.
