Kuala lumpur: The Securities Commission Malaysia (SC) has concluded that there is no current necessity to advance with the proposed legislation to establish a subsidiary of Bursa Malaysia Bhd, known as Bursa Malaysia RegSub, which was intended to take over the regulatory functions from the exchange holding company. According to BERNAMA News Agency, Bursa Malaysia disclosed through a filing on its website that it had received a letter from the SC, dated March 19, 2026, marking the closure of the proposed establishment of Bursa Malaysia RegSub. This initiative was first announced on February 25, 2020, aiming to bolster the group's conflict of interest (COI) governance framework by distinctly separating its regulatory functions from its commercial activities, given Bursa Malaysia's roles as a market operator, frontline regulator, and self-listed entity. The SC's correspondence highlighted that since the initial announcement, Bursa Malaysia has fortified its COI framework by incorporating recommendations relate d to the proposed Bursa Malaysia RegSub into its governance model. Based on these improvements, the SC determined there is no immediate requirement to proceed with the proposed legislation and assured that it would continue to monitor and evaluate the effectiveness of the existing governance structure. Among the enhancements made are changes to the Regulatory and Conflicts Committee's (RACC) membership composition, functions, and governance structure, including boosting the RACC's independence from the management of Bursa Malaysia. Notably, the RACC now comprises a majority of external members, including the committee's chairman. Bursa Malaysia stated that the SC believes the current, progressively strengthened RACC structure is sufficient and practical for effectively carrying out Bursa Malaysia's regulatory duties.