Regulatory Alerts2004-08-02
Securities Commission (Prescription of Islamic Securities) Order 2004
The Second Minister of Finance, on the recommendation of the Securities Commission, formally prescribes Islamic securities such as sukuk and Mudharabah or Musyarakah-based products as regulated securities under the Securities Commission Act 1993. This order subjects these instruments to Division 4 of Part IV of the Act, statutorily redefining references to "borrowers" as "issuers" to ensure proper regulatory oversight. It simultaneously mandates strict compliance with the Commission's Guidelines on the Offering of Islamic Securities while explicitly exempting Islamic securities issued through unit trust or prescribed investment schemes from Division 5 of Part IV.
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