Shariah Pronouncement

Shariah Pronouncement of the Shariah Adviser and Shariah Committee of Bursa Malaysia Islamic Services Sdn Bhd (BMIS) as at 26/12/2018
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).
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 BMIS concerning the execution of commodity trading process for timber offered on Bursa Suq Al-Sila’ (BSAS) platform.
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 BMIS concerning the application of debt settlement through agents as one of the settlement mechanisms for transactions conducted via Bursa Suq Al-Sila’ (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.
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).
6 Islamic Securities Selling and Buying Negotiated Transaction Model (ISSBNT) 9 April 2015 The Shariah Committee endorsed the revised Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT) structure.
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
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 BMIS concerning Bursa Suq Al-Sila’.
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 BSAS trading platform.

  1. Before enhancement: To complete the transaction, BMIS will sell at random in the commodity market. However, the possibility of the same commodity sold to the same party or original supplier may exist.

  2. After enhancement: The system has been improved with the exclusion of the original supplier when BMIS sells it in the commodity market. The staging inventory is embodied in the system to hold the commodity from being sold to the original supplier until there is eligible CSP to buy the said commodity. The movement is captured by and recorded in the BSAS system.

The Shariah Committee reviewed and endorsed the 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.