SC revises debts, sukuk guidelines

KUALA LUMPUR:The Securities Commission (SC) today issued the revised guidelines for private debt securities (PDS), sukuk and trust deeds to enhance the regulatory framework for fundraising and product regulation in the PDS and sukuk markets.

"The revisions are in line with the broader objectives of the Capital Market Masterplan 2 (CMP2) which seeks to achieve higher levels of operational efficiency, enhanced standards for fair and ethical business practices and strengthen internal controls for business conduct and risk management," it said in a statement today.

The revised PDS and sukuk guidelines streamline the approval process and time-to-market for the issuance of corporate bonds and sukuk.

The revisions also facilitate a more informed investment decision-making process with additional provisions to ensure greater disclosure of relevant information to investors.

The revised sukuk guidelines provide greater clarity on the application of shariah rulings and principles endorsed by the SC's Shariah Advisory Council in relation to sukuk transactions.

The revised trust deed guidelines, meanwhile, improves disclosure standards and protection for corporate bond and sukuk holders.

Malaysia is currently the largest sukuk market in the world, accounting for about 65 per cent of the global issues, while the bond market is the third largest as a percentage to GDP in Asia.

"The revised guidelines will help Malaysia maintain its leading position by continuously attracting both local and international issuers and investors into the corporate bond and sukuk markets," the SC said.- Bernama