Shariah Governance
Shariah Pronouncements
Shariah Pronouncements of the Shariah Adviser and Shariah Committee of Bursa Malaysia Islamic Services Sdn. Bhd. (BMIS) as at 31/7/2021.
No. | Subject | Date of Issuance | Description |
---|---|---|---|
1. | Approval of Bursa Suq Al-Sila’ | 21 Oct 2010 | The Shariah Advisors endorsed the structure, mechanism, and documentation prepared by Bursa Malaysia Islamic Services Sdn. Bhd. (BMIS) concerning Bursa Suq Al-Sila’ (BSAS). Shariah Compliance Endorsement on BSAS |
2. | Approval of Trading Approach for Timber in Bursa Suq Al-Sila’ | 27 April 2013 | The Shariah Committee reviewed and endorsed the structure and mechanism presented by
Bursa Malaysia Islamic
Services Sdn. Bhd. (BMIS) concerning the execution of trading process for timber commodity offered on Bursa Suq Al-Sila’ (BSAS) platform. Approval of Trading Approach for Timber in BSAS |
3. | Application of Debt Settlement through Agents in Bursa Suq Al-Sila’ | 23 May 2013 | The Shariah Committee endorsed the structure and mechanism prepared and submitted by
Bursa Malaysia Islamic
Services Sdn. Bhd. (BMIS) concerning the application of debt settlement through agents
using the setting-off
concept,
as one of the settlement mechanisms for transactions conducted via Bursa Suq Al-Sila’ (BSAS). Application of Debt Settlement Through Agents in BSAS |
4. | Bursa Suq Al-Sila’ – Trading Break during Jumaat Prayer | 23 May 2013 | The Shariah Committee endorsed the Bursa Suq Al-Sila’ (BSAS) one-hour trading break during Jumaat prayer , i.e. from 1.00 p.m. to 2.00 p.m. on every Friday. BSAS - Trading Break During Jumaat Prayer |
5. | Islamic Securities Selling and Buying (ISSB) | 22 July 2014 | The Shariah Committee endorsed the structure of ISSB as a Shariah-compliant alternative to Securities Borrowing and Lending (SBL). Islamic Securities Selling and Buying (ISSB) |
6. | Islamic Securities Selling and Buying Negotiated Transaction Model (ISSB-NT) | 9 April 2015 | The Shariah Committee endorsed the revised Islamic Securities Selling and Buying Negotiated Transaction (ISSB-NT) structure, which is based on the Securities
Borrowing and Lending-Negotiated Transaction (SBL-NT) model. The ISSB-NT model is structured utilizing:
Islamic Securities Selling and Buying Negotiated Transaction Model (ISSB-NT) |
7. | Placement of Securities in Individual CDS Account | 22 April 2015 | The Shariah Committee resolved that the individual Central Depository System (CDS) account that holds in the custody Shariah-compliant and Shariah non-compliant securities raises no issue from Shariah perspective. Placement of Securities in Individual CDS Account |
8. | Shariah Committee Endorsement on Bursa Suq Al-Sila’ Process | 19 Dec 2016 |
The Shariah Committee reviewed and endorsed the structure, mechanism and documentation prepared and submitted by Bursa Malaysia Islamic Services Sdn Bhd (BMIS) concerning the standard flows of commodity and two common transactions on Bursa Suq Al-Sila’ (BSAS), namely, the Financing Structure and Deposit Structure. The former structure is implemented
whereby the Commodity Trading Participant (CTP) provides financing to their client, while the latter is when
the CTP receives financing from their client. Shariah Committee Pronouncement on BSAS Process
|
9. | Bursa Suq Al-Sila’ (BSAS): Improvement of Randomisation Process | 1 March 2018 | Based on the feedbacks and recommendation from the industry and some Shariah scholars, Bursa Malaysia Islamic Services Sdn. Bhd. (BMIS) has undertaken a system enhancement to further improve the randomisation process in
Bursa Suq Al-Sila’ (BSAS) trading platform.
The Shariah Committee reviewed and endorsed the improvement of randomisation process. BSAS - Improvement of Randomisation Process |
10. | Annual Shariah Confirmation on Bursa Malaysia-i | 18 May 2018 | Bursa Malaysia-i is a platform that offers a comprehensive range of exchange-related facilities including listing, trading, clearing, settlement and depository services, leveraging on existing infrastructure with enhancements to incorporate a complete end-to-end Shariah compliant investment features.
The Shariah Committee confirmed that all the operations and services of Bursa Malaysia-i for the period from 5 September 2016 until 19 March 2018 have been conducted in conformity with the Shariah principles.
Annual Shariah Confirmation on Bursa Malaysia-i |
11. | General Shariah Principles on Listing of Waqf Securities | 7 Dec 2018 | The Shariah Committee has endorsed
the listing of ‘Waqf securities’, whereby said securities are issued on
the concept of Waqf for the purpose of fundraising to support social and
sustainable development activities. The Waqf securities endorsed for listing are either: i. limited to a perpetual subscription based on the concept of perpetual Waqf; or ii. can be subjected to a temporary subscription based on the concept of temporary Waqf (Waqf Mu’aqqat) The listing of these securities is subjected to the adherence of relevant principles, as laid out by the Shariah Committee.General Shariah Principles of Listing of Waqf Securities |
12. |
Bursa Suq Al-Sila’ (BSAS): Salam Deposit | 2 Jan 2019 | The Shariah Committee has
reviewed the structure and mechanism prepared by Bursa Malaysia Islamic
Services Sdn Bhd (BMIS) regarding deposit taking activities via a forward sale (Salam)
contract and agreed to endorse it as Shariah-compliant.
Bursa Suq Al-Sila' Salam Deposit |
13. | Straight Through Processing (STP) in Bursa Suq Al-Sila’ (BSAS) System | 18 June 2019 | In enhancing the efficiency of the Bursa
Suq Al-Sila’ (BSAS) system, Straight Through Processing (STP) is introduced to
allow the Commodity Trading Participant (CTP) to automate Commodity Murabahah
transactions in the system by way of submitting a set of transaction data which
consists of all purchasing information required to BSAS’s server instead of
purchasing manually through the normal channel.
The Shariah Committee has subsequently approved of
said process, while expressing relevant solutions in events of disputes
regarding the ownership status of the commodity arising from calamitous events.
Straight Through Processing (STP) in BSAS System |
14. | Bursa Suq Al-Sila’ (BSAS): End-of-Day (EOD) Bay’ amongst Commodity Supplying Participant (CSP) | 15 April 2021 | End-of-Day (EOD) Bay’ amongst the Commodity Supplying Participants (CSPs) would entail their freedom to enter a transaction, based on the Current and Original CSP’s equal rights, ability and option to:
The Shariah Committee has reviewed the structure, mechanism and documentation prepared by Bursa Malaysia Islamic Services Sdn Bhd (BMIS) and subsequently endorsed EOD Bay’ amongst CSP. Bursa Suq Al-Sila' (BSAS) End-of-Day (EOD) Bay' amongst CSP |