The Shariah Advisory Council (SAC) of the Securities Commission Malaysia (SC) periodically approves list of securities which have been classified as Shariah-compliant securities. The list of Shariah-compliant securities are listed on Bursa Malaysia.

In classifying these securities, the SAC received input and support from the SC. The SC obtained information on the companies through, among others, annual reports and enquiries made to the companies. The SAC, through the SC, will continue to review the Shariah status of securities listed on Bursa Malaysia, on an annual basis, based on the latest available annual audited financial statements of the companies.

The SAC adopts a two-tier quantitative approach, which applies the business activity benchmarks and the financial ratio benchmarks, in determining the Shariah status of the listed securities. Hence, the securities will be classified as Shariah-compliant if their business activities and financial ratios are within these benchmarks.