FAQS
FAQs on Bursa Malaysia-i
- What are the main differences between the existing trading activities with the Islamic POs and trading activities with the Islamic POs post-establishment of Bursa Malaysia-i?
Instruments:
Investment instruments listed on the Main and ACE Market of Bursa Malaysia Securities Berhad are Shariah-compliant.Trade:
Islamic POs and conventional POs have segregated trading channels.Depository:
Shariah-compliant securities in an investor’s CDS account are now tagged with “SP” coding which indicates “Shariah-compliant securities”.Clearing:
Post-trade clearing of trades done via the Islamic POs will be undertaken and guaranteed by Shariah-compliant Bursa Malaysia Securities Clearing Sdn Bhd.Settlement:
Settlement of trades between the Islamic POs and Bursa Malaysia will be done through Islamic Financial Institutions. - Who can have access to Bursa Malaysia-i?
All types of investors: retail, institutions, fund managers, unit trust managers (domestically and internationally).
- How do I start investing on Bursa Malaysia-i?
Approach an Islamic PO.
Register and activate a CDS and trading account with the Islamic PO.
Trade and invest on Bursa Malaysia-i via one of the 10 Islamic POs. - If an investor already has an existing trading account with an Islamic PO, does he/she need to open a new trading account to trade on Bursa Malaysia-i?
An investor who already has a trading account with an Islamic PO does not need to open a new trading account. The existing trading account with his/ her Islamic PO is sufficient to trade securities on Bursa Malaysia-i.
- Can an investor/client of a PO with an Islamic window use a conventional trading account to trade on Bursa Malaysia-i?
An investor who wishes to trade on Bursa Malaysia-i must open a Shariah-compliant trading account. The Shariah-compliant trading account may prescribe terms and conditions in accordance to Shariah principles vis-à-vis trading activities on Bursa Malaysia-i. Kindly enquire with your appointed broker i.e. Islamic PO.
- Can I still invest in Shariah-compliant securities even though my broker is not an Islamic PO?
Yes. There is no restriction to investing in Shariah-compliant securities through other conventional POs.
- Will I be able to buy Shariah non-compliant securities via Bursa Malaysia-i?
The buying of Shariah non-compliant securities is prohibited on Bursa Malaysia-i. The buying activities of Islamic POs on Bursa Malaysia-i are limited to Shariah-compliant securities only.
- If the Shariah-compliant securities which I am holding has been re-classified as Shariah non-compliant following the Shariah review by the Shariah Advisory Council (“SAC”) of Securities Commission Malaysia (“SC”), do I need to dispose of the securities immediately?
Following the re-classification of the securities upon Shariah review by the SAC of the SC, investors are responsible to undertake an exercise to determine whether the market price of the affected securities exceeds, is equal to or is less than the investment cost.
Kindly refer to Best Practices for Shariah Investing for full guidance.
Reference: Bursa Malaysia-i
- As a Shariah investor, where can I channel income that is considered tainted income?
Shariah investors should bear the responsibility to identify tainted income and are encouraged to channel the tainted income to Baitulmal and/ or any approved charitable bodies.
Kindly refer to Best Practices for Shariah Investing for full guidance.
Reference: Bursa Malaysia-i
- Do Muslim investors need to perform zakat distribution for any profits received from the Shariah-compliant trading activities?
Muslim investors are obligated to perform zakat distribution to authorised or designated zakat collection centres from any profits derived from the Shariah-compliant trading activities.
Kindly refer to Best Practices for Shariah Investing for full guidance.
Reference: Bursa Malaysia-i