More clarity needed on Malaysia’s new sukuk rules

Author: | Published: 16 Aug 2011

Lawyers in Malaysia have called for further guidance from the Malaysian Securities Commission (SC) on its new sukuk rules to address market confusion over their application.

The SC last month published revisions to guidelines governing private debt securities, sukuk and the minimum content for trust deed in relation to such instruments.

The amendments aimed to add greater depth to Malaysia’s sukuk market by streamlining the approval process and time-to-market for issuances of the instrument, as well as improving the disclosure standard and protection for corporate bond and sukuk holders.

But the new rules, which came into effect last...