How do we ensure the sukuk structure conform to Shariah principles?
The structure of sukuk must be approved by a Shariah adviser appointed by the issuer. In the case of ringgit sukuk issuance, the sukuk can be structured by applying various Shariah principles and concepts that are listed in Appendix 1 of the Guidelines on the Offering of Islamic Securities (Guidelines) which have been endorsed by the Securities Commission Shariah Advisory Council (SAC). For new Shariah principle structure which has yet to be introduced in the market, the SAC’s approval is required. For non-ringgit issuance, Malaysia will accept the Shariah opinion of other jurisdictions and the issuer need not obtain a Shariah endorsement from the SAC.
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