Regulatory Alerts2018-10-11
FAQs on the Seasoned Corporate Bonds and Sukuk Framework
The Securities Commission (SC) established this framework to allow corporate bonds and sukuk originally issued to sophisticated investors to be re-denominated and sold to retail investors in the secondary market without a prospectus. Eligible instruments must complete a 12-month primary market seasoning period, satisfy specific issuer and bond type requirements, and be distributed solely through licensed Eligible Distributors adhering to sales practices guidelines. The document outlines investor complaint procedures via SIDREC, mandates reliance on original disclosure documents, and grants a two-year waiver on distributor notification fees.
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