Maybank Investment Bank (Maybank IB) has been successfully registered by Bursa Malaysia as an approved supplier and user under the Islamic Securities Selling and Buying – Negotiated Transaction (ISSBNT) framework.
With this development, Maybank IB will be able to facilitate the trading of shariah-compliant securities. This is on top of the ability to conduct hedging and risk management activities for market participants while observing shariah principles.
The chief executive officer of Maybank IB, Dato’ Fad’l Mohamed said that the bank’s status as an approved supplier and user under ISSBNT will allow it to better support its clients’ investment management strategies. This is as there is a strong demand for shariah-compliant assets among investors.
“With shariah-compliant securities making up 79% of Bursa Malaysia listed securities, there is potential to further develop our Islamic capital markets, and Maybank IB will continue to play an active role in making Malaysia a leader in this space,” said Dato’ Fad’l.
Meanwhile, the chief executive officer of Bursa Malaysia, Datuk Muhamad Umar Swift said that the participation of more organisations under ISSBNT demonstrates the local exchange’s commitment to growing the Islamic equity market. “We look forward to the increased participation and continued support from our brokers to spur the growth and vibrancy of our marketplace, upholding Malaysia’s position as the world’s leading Islamic shariah-compliant equities market,” he said.
To note, the ISSBNT framework – which was launched by Bursa Malaysia back in 2017 – is acknowledged as the world’s first shariah-compliant alternative to the Securities Borrowing and Lending – Negotiated Transaction (SBLNT) model. It was developed based on concepts such as bai’ (sale), wa’dan (unilateral promises/undertakings), and khiyar al-shart (conditional option) to improve the trading liquidity and pace of shariah-compliant securities, thereby enabling a more conducive trading environment.
Aside from Maybank IB, other financial institutions that have also been onboarded as approved suppliers and users under the ISSBNT framework include CGS-CIMB Securities and Kenanga Investment Bank. Meanwhile, there are currently a total of 179 shariah-compliant securities that are eligible for ISSBNT transactions (reviewed and approved by the Securities Commission’s Shariah Advisory Council).