Brokers under restrictions

Brokers under restrictions

KUALA LUMPUR (AFP): The Kuala Lumpur Stock Exchange announced Saturday it will place five Malaysian brokerages under trading restrictions from next week.

The brokerages are Kuala Lumpur-based Sime Securities and Capitalcorp Securities, MBf Northern Securities and Kin Khoon Co in northern Perak state and Labuan Securities in Labuan island off eastern Sabah state.

From Monday, the five firms will only be allowed to conduct or execute selling transactions while purchases can only be made upon receipt of 100 percent up front payment, the exchange said in a statement.

The brokerages are also prohibited from undertaking margin purchases and direct business transactions as well as "any other form of activities which may increase (their) risks or exposure."

No reasons were given for the trading curbs but the stock exchange said the restrictions will be immediately lifted once the companies have "regularized their trading positions."