SC issues new guidelines to improve syariah governance

PETALING JAYA: The Securities Commission (SC) has issued new guidelines on Islamic Capital Market Products and Services (ICMPS Guidelines) as part of its efforts to improved the syariah governance framework for the Islamic Capital market.

In a statement, SC stated that as the main source of reference on all various offerings of Islamic Capital Market (ICM) products and services, the ICMPS Guidelines will consolidate all the syariah requirements that were previously set out in various guidelines.

The ICMPS include the guidelines on unit trust funds, exchange-traded funds and unlisted capital market products under the lodge and launch framework.

The ICMPS Guidelines are effective as of Nov 28, 2022, and entail a detail central documents on syariah principles and requirements, applicable to ICM products and services.

Thee SC stated a chapter on waqf can be found in the ICMPS as a bid to deepen and broaden the ICM. In terms of capturing the value proposition of Islamic social finance for sustainable and responsible investment initiatives, the waqf is a crucial enabler.

Listed funds such as Islamic Real Estate Investment Trusts and Islamic Exchange Traded Funds are included in the enlarged Waqf-Featured Fund Framework (WQ-FF Framework).

SC chairman Datuk Seri Awang Adek Hussin said the ICMPS Guidelines and the expansion of the WQ-FF Framework are in line with the development of the industry and needs of the market.

“Innovation is the key to remain relevant and solidify Malaysia’s role at the forefront of shariah market-based advancements,” he said.

The SC added the amended framework can provide more options for product issuers and investors to widen their investment choices. They will be exposed to products that allocate all or part of their returns towards socially impactful activities via waqf.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Business News

Malaysia's total trade up 8.6% to RM236bil in December 2022
SCIB withdraws from JB specialist hospital project
India's Adani kicks off $2.45 bln share sale while under short-seller attack
FBM KLCI set to close lower for third straight day
Malaysia airports records 52.7 million passenger traffic in 2022 - MAHB
Bill Ackman says Hindenburg's report on Adani Group 'highly credible'
Ringgit opens firmer vs US$ on higher oil prices
Kerjaya Prospek, SunCon are top sector picks, says RHB
FBM KLCI retests 1,500 level as US GDP data lifts investor sentiment
Trading ideas: Reservoir Link Energy, MQ Technology, Berjaya Corp and SYF Resources

Others Also Read