ISLAMIC CAPITAL MARKET
Islamic capital market (ICM) transactions are carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. Here, there is assertion of religious law so that the market is free from activities prohibited by Islam such as usury (riba), gambling (maisir) and ambiguity (gharar).

The ICM is a component of the overall capital market in Malaysia. It plays an important role in generating economic growth for the country. The ICM functions as a parallel market to the conventional capital market, and plays a complementary role to the Islamic banking system in broadening and deepening the Islamic financial markets in Malaysia. To this day, Malaysia’s ICM remains a compelling destination for all stakeholders.

The SC’s early initiative in setting up a dedicated Islamic Capital Market Department (ICMD) was to provide the much needed infrastructure support. The mandate of the ICMD is to carry out development and research activities including formulating and facilitating a long-term plan to further strengthen the ICM in Malaysia.

Malaysia has also driven the innovation to introduce a two-tier Shariah governance framework for the ICM. The establishment of national Shariah Advisory Council (SAC) in May 1996 was embedded under the Securities Commission Act, which empowers the SAC to issue rulings.

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Latest from ICM

18 September 2021
The research by Dr Hashim Jusoh examines the relationship between futures and spot markets in Malaysia, specifically, between the stock index futures, crude palm oil futures, conventional stock indices and Shariah stock indices, traded on Bursa Malaysia Derivatives and Bursa Malaysia Securities. Time and frequency domain approach based on the wavelet techniques are used to study multi-horizons correlations, hedging effectiveness and inter-temporal causality between the above-mentioned variables.

5 August 2021
As part of the ongoing efforts to enhance the ecosystem for Shariah-compliant fund raising activities through the ECF and P2P financing platforms, the SC introduces the Shariah Screening Assessment Toolkit for the Unlisted Micro, Small and Medium Enterprises (“Toolkit”) as a guidance in screening the Shariah status of the MSMEs in the unlisted market.

30 June 2021
  • Islamic Fund Management Statistics
  • Statistics for Islamic Capital Market in Malaysia

2 June 2021
The 11th SCOCIS Roundtable 2020 themed ‘Repurposing Islamic Finance for Longer-Term Opportunities’ aimed to further explore the role of Islamic finance, with its wide range of financing instruments, such as SRI sukuk, in mitigating the short-term impacts of the COVID-19 pandemic and supporting post-COVID-19 recovery. Click here to download the proceedings.

27 May 2021
The Shariah Advisory Council (SAC) of the Securities Commission Malaysia (SC) has approved an updated list of securities, which have been classified as Shariah-compliant securities. The list of Shariah-compliant securities, which are listed on Bursa Malaysia will take effect from 28 May 2021.

25 May 2021
The Securities Commission Malaysia (SC) and the United Nations Capital Development Fund (UNCDF), through its Centre for Financial Health programme, today launched an innovation programme to develop a vibrant Islamic fintech innovation ecosystem in Malaysia’s Islamic capital market (ICM).

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