KUALA LUMPUR: Bursa Malaysia says it is entitled to exercise its power against Serba Dinamik Holdings Bhd being the frontline regulator of the country's capital market.

Such action was pursuant to the listing requirements in the interest of maintaining an orderly and fair market, Bursa said, in response to the legal action against it by Serba Dinamik.

Bursa said it would be defending its position vigorously and would not abdicate its statutory roles and functions in the marketplace.

"Timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. 

"This is paramount to enable Bursa Securities to discharge its statutory duty," the stock exchange said in a statement yesterday.

The statement was issued after Bursa had been served with legal papers on Nov 3 which included an originating summons and notice of application  for an interim injunction by Serba Dinamik.

Bursa has engaged a legal counsel for advice on the matter and its next course of action while the application for interim injunctive relief is fixed for hearing on Nov 11 and the case management for the originating summons is set for Nov 17.

Serba Dinamik and Bursa are locking horns after the latter demanded the oil and gas company to disclose details from the factual findings update as at Sept 30 on the special independent review communicated to three out of four independent non-executive directors on Oct 21.

Bursa subsequently suspended the trading of Serba Dinamik's securities on Oct 22.

It also issued an ultimatum to Serba Dinamik to reveal the findings from the independent review on Oct 26 but was met with a denial.

Serba Dinamik, meanwhile, had insisted that its directors had not been given a "factual findings update" by independent auditor Ernst & Young Consulting Sdn Bhd.

The audit saga started in mid-May when KPMG highlighted discrepancies involving about RM4.54 billion of transactions in the year ended Dec 31 2020 financial accounts to Serba Dinamik's independent directors.