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Bonds are fixed income securities issued to lenders of long-term loans, with a maturity date. They provide returns in the form of fixed periodic payments.

Overview

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Listed under Exempt Regime: Overview

In an effort to promote the fixed-income markets whilst enhancing the breadth and depth of investment options in Malaysian capital market, Bursa Malaysia offers a listing platform for sukuk and debt securities called Exempt Regime.

Exempt Regime was introduced in December 2008. This is the collective initiative by various Malaysian regulators and the government. The initiative also aims to develop Malaysia as a hub of Islamic financial centre under the umbrella of the Malaysian International Islamic Financial Centre (“MIFC”). Hence the Listing Requirements (“LR”) was enhanced to introduce a framework for the listing of sukuk and debt securities on the Exchange.

What is Exempt Regime?

Under the “Exempt Regime”, sukuk or debt securities are listed on the Main Market but will not be quoted and traded on the Exchange. It is a shelf-lifting platform for visibility and profiling purposes. The trading shall occur on Over-the-Counter (OTC) basis.

Who can list?

Previously, only issuers who are listed on the Official List of Bursa Malaysia Securities Berhad may apply to list its debt securities on the Exchange. Now, listed and non-listed issuers may apply to list their sukuk and/or debt securities on the Exchange. They shall be subject to eligibility requirements by the SC.

Why Listing?

The platform provides an avenue for issuers who intend to acquire listing status for their issuances. The listed sukuk and debt securities shall have higher visibility and transparency with disclosure of information being made to the Exchange and the public. The listing could also be useful for profiling of the issuers. Hence, this will attract investment from a wider segment of institutional and high net worth investors.

Listing under Exempt Regime

Listing under Exempt Regime
Type of issuer Listed and non-listed issuers
Type of issuance All types of issuances
Tenure Issuance with more than 1 year of tenure
Currency RM and Non-RM Sukuk and/or debt securities
Currency
  • Fast approval process
  • Simple and clear listing requirements
  • Bursa is the recognised Shari’ah compliant investment avenue
  • Automatic cross border listing capabilities
Applicable Fees
  • Initial Listing fee: RM3,000
  • Annual Listing fee: RM2,000
Note: All fees are calculated per programme
Regulatory Approval
  • Issuance: Securities Commission Malaysia
  • Listing: Bursa Malaysia
Reference
  • Chapter 4B of the Bursa Malaysia Listing Requirement
  • Part B Practice Note 26-A (PN26-A)

Bursa has obtained an approval to display prices exclusive of the Goods and Services Tax (“GST”) under subsection 9(7) of the Goods and Services Tax Act 2014. Accordingly, each fee, charge or amount payable to Bursa Malaysia Securities Berhad set out above does not include GST i.e. price payable is exclusive of GST.

6% GST is payable on all fees, charges or amounts payable (unless otherwise specified by Bursa Malaysia Securities Berhad in accordance with the Goods and Services Tax Act 2014), and will be billed in the tax invoices issued in relation to such fees, charges or amounts payable.

When to list?

An issuer may submit an application pre or post issuance. For pre issuance submission, an issuer may submit its listing application to the Exchange at the same time it submits its application for approval to the Securities Commission. However, the Exchange’s approval for listing, if granted, will be conditional upon to the Securities Commission’s approval being granted.

Full list of Exempt Regime sukuk/bonds

Please click here for full list of sukuk/bonds listed under Exempt Regime.