Regulatory Alerts2019-07-19
FAQs on the Seasoned Corporate Bonds and Sukuk Framework
The Securities Commission Malaysia issued this document to clarify the Seasoned Corporate Bonds and Sukuk Framework, which allows corporate bonds originally issued to sophisticated investors to be re-denominated and distributed to retail investors in the secondary market without a prospectus. Eligible bonds must have been issued for at least 12 months and meet specific criteria, such as being plain vanilla or perpetual bonds issued by licensed banks or their holding companies, and can be purchased through designated Eligible Distributors. The framework waives initial notification fees for two years and mandates that distributors provide access to information memorandums and trust deeds while adhering to sales practices guidelines.
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