Information Memorandums (IM) do not require approval from the Securities Commission (SC)
Basic Explanation
- An Information Memorandum (IM) does not require approval from the Securities Commission Malaysia (SC)
Purpose of IM
- An IM is an important document prepared by a company before fundraising
- It typically includes:
- Investment risks
- Share dilution information
- Company profile
- Future business plans
- Market Prospects
- Financial Statements
- Its main purpose is to attract investors
Common Misleading Practice
- Some fraudulent companies may claim that their IM has been approved by the SC to mislead investors
- In reality, companies are only required to submit the IM to the SC and do not need approval
⚠️ Note: If a company claims that its IM has been approved by the SC, you should be cautious, as this may indicate a potential investment scam.