What is SIDC Module 6?
Module 6, Stock Market and Securities Law, is one of the Securities Commission's licensing examinations, run by the Securities Industry Development Corporation (SIDC). It tests the laws and rules behind the Malaysian stock market. Most people who want a Capital Markets Services Representative's Licence to deal in securities take it together with Module 7.
The exam format
| Questions | 60 multiple choice |
|---|---|
| Time | 90 minutes |
| Pass mark | 60% (36 correct answers) |
| Fee | RM 400 per sitting, the same for re-sits |
| Materials | Prescribed reference materials (PRMs) are allowed for Module 6 |
| Mode | Centre-based or remote proctored; the physical option carries a non-refundable RM 100 administrative fee |
| Results | Released three working days after the exam and valid for two years |
Registration closes three working days before the exam, and you cannot enter once 30 minutes have passed from the start. SIDC's published terms do not state the exam languages, so check with SIDC when you register.
What the exam covers
- Market structure: the SC, Bursa Malaysia, the Main, ACE and LEAP Markets, the depository and clearing house, take-over and substantial shareholding thresholds.
- Capital Markets and Services Act 2007: regulated activities, licensing (sections 58 and 59), trust accounts, short selling, reasonable basis for recommendations, client priority.
- SC powers: functions under the Securities Commission Malaysia Act 1993, administrative actions, civil and criminal enforcement.
- Bursa Malaysia trading: trading phases and hours, T+2 settlement, board lots, disclosure and public spread under the Listing Requirements.
- SICDA and clearing: CDS accounts, authorised nominees, secrecy, novation.
- Market misconduct: false trading, manipulation, false statements and insider trading (sections 175 to 188) and their penalties.
- AMLA and ethics: money laundering, suspicious transaction reports, tipping off, record keeping, conduct of licensed persons.
Free official resources, and what we add
The Acts are free to read on the Securities Commission website, and SIDC publishes its exam terms online. SIDC sells official study guides, with a 20% discount for first-sitting candidates. There is no free official question bank. Our questions are original, are written and checked against the Acts themselves, and each explanation names the section it comes from, so you learn the law and not just the answer.
How to prepare
- Read the SIDC study guide for Module 6 and keep the CMSA open beside it.
- Learn the penalty pattern: RM10 million or 10 years for unlicensed business, RM5 million or 5 years for an unlicensed representative, and at least RM1 million plus up to 10 years for market misconduct and insider trading.
- Memorise the Bursa trading timetable and T+2 settlement.
- Practise one topic at a time, then sit full 60-question mocks in 90 minutes.
- Get to know your prescribed reference materials so you can find sections fast in the exam.
Practice questions with answers
Tap a question to see the correct answer and explanation.
Which Bursa Malaysia market is open only to sophisticated investors?
- The derivatives market
- The LEAP Market
- The Main Market
- The ACE Market
Answer: B, The LEAP Market. The LEAP Market is a qualified market for small and medium enterprises, and only sophisticated investors may invest in it. The Main Market is for larger companies and the ACE Market is a sponsor-driven market for growth companies; both are open to retail investors. Source: Bursa Malaysia, LEAP Market Listing Requirements.
Under section 58 of the CMSA, what is the maximum penalty for carrying on a business in a regulated activity without a licence?
- A fine up to RM500,000 only
- A fine up to RM1 million, up to 3 years' jail, or both, plus a daily fine
- A fine up to RM5 million, up to 5 years' jail, or both
- A fine up to RM10 million, up to 10 years' jail, or both
Answer: D, A fine up to RM10 million, up to 10 years' jail, or both. Section 58(4): a fine not exceeding RM10 million or imprisonment not exceeding 10 years or both. RM5 million and 5 years applies to acting as an unlicensed representative under section 59(2). Source: Capital Markets and Services Act 2007 (Act 671), sections 58(4) and 59(2).
Under which Act was the Securities Commission Malaysia established?
- Central Bank of Malaysia Act 2009
- Companies Act 2016
- Securities Commission Malaysia Act 1993
- Capital Markets and Services Act 2007 (Act 671)
Answer: C, Securities Commission Malaysia Act 1993. The SC was established on 1 March 1993 under the Securities Commission Act 1993 (now the Securities Commission Malaysia Act 1993). The CMSA came later and governs market activities and intermediaries. Source: Securities Commission Malaysia Act 1993.