Bursa Malaysia introduces rules on listing of exchange traded bonds and Sukuk (By IFN)

Thursday 27^th September 2012

MALAYSIA: Bursa Malaysia, the stock exchange operator, introduced rules for the listing of exchange traded bonds and Sukuk (ETBS) on the 26th September 2012, following its issuance of a consultation paper seeking feedback on the new products in May. The exchange is now working with issuers for the potential listing and trading of their Sukuk and bonds. The new rules have been published just after Securities Commission Malaysia launched its framework for ETBS early this month, allowing retail bonds and Sukuk to be issued and traded on the stock exchange or over-the-counter through appointed banks. The introduction of ETBS to the Malaysian market is aimed at attracting retail investor participation in bond and Sukuk sales, while increasing the range of tradable products on Bursa Malaysia. “We are creating an environment that provides something for every type of investor,” said Tajuddin Atan, CEO of Bursa Malaysia. In addition, Sukuk and bond issuers will be able to benefit from greater flexibility in their fundraising exercises. The initiative is also a project under the government’s economic transformation program. In its introductory phase, investors will be allowed to invest in Sukuk and bonds sold or guaranteed by the Malaysian government, with investments in debt issuances from public listed companies and banks likely to be introduced next year. The authorities are expected to issue rules on investing in corporate debt issuances in January 2013.