Bursa Malaysia Berhad recently welcomed CGS-CIMB Securities Sdn Bhd (“CGS-CIMB”) and Kenanga Investment Bank Berhad (“KIBB”) as Approved Suppliers and User Representatives under the Islamic Securities Selling and Buying – Negotiated Transaction (“ISSBNT”) Framework.
As Supplier and User Representatives, CGS-CIMB and KIBB will act as an agent to facilitate the buying and selling of Shariah-compliant securities, as well as enable hedging and risk management activities for market participants while adhering to Shariah principles. ISSBNT is the world’s first Shariah-compliant alternative to Securities Borrowing and Lending
(“SBL”), which was launched by the Exchange in December 2017. The platform was developed as a mechanism to provide a facilitative trading environment and improve trading liquidity and velocity of securities assets, all while complementing the ever-growing value of Shariah-compliant securities in Malaysia.
Puan Ruzi Rani Ajith, Chief Executive Officer of CGS-CIMB Securities Sdn Bhd said, “As one of ISSBNT’s pioneering Supplier and User Representatives, CGS-CIMB has already onboarded clients with operational systems in place. Datuk Chay Wai Leong, Group Managing Director of Kenanga Investment Bank Berhad says, “This move signifies Kenanga’s unique position in facilitating the buying and selling of listed Shariah-compliant securities within the ISSBNT model, in addition to our existing Shariah- compliant product offerings.
To date, there are 179 Shariah-compliant securities eligible for ISSBNT transactions, as reviewed and approved by the Securities Commission Malaysia’s Shariah Advisory Council.
