Shariah-Compliant Securities

Screening Methodology

Shariah-compliant securities are securities of a public-listed company which have been classified as Shariah permissible for investment, based on the company’s compliance with Shariah principles in terms of its primary business and investment activities as well as financial position.

In classifying these securities, the SAC adopts a two-tier quantitative approach which applies the business activity benchmarks and financial ratio benchmarks, in determining the Shariah status of the securities.

List of Shariah-Compliant Securities

The list of Shariah-compliant securities, first introduced in 1997, gives investors the necessary guidance, opportunities and confidence to choose and invest in listed securities that comply with Shariah principles. The list is updated twice a year, i.e. in May and November.

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Shariah Compliance Review for Companies Seeking Listing on Bursa Malaysia Securities Berhad

Effective April 2024, companies seeking listing on Bursa Malaysia Securities Berhad (Bursa Malaysia) are no longer required to submit applications to the Shariah Advisory Council SC (SAC) should they wish for their securities to be classified as Shariah compliant. Instead, the securities of companies seeking listing on the Main Market, ACE Market and LEAP Market of Bursa Malaysia will be reviewed by the SAC for the purpose of determining their Shariah status. This Shariah compliance review by the SAC will provide clarity and certainty to investors on the Shariah status of such securities prior to listing on Bursa Malaysia and thus, enhancing investor confidence to invest in Shariah-compliant securities.

The Shariah status of the securities will be updated on SC’s website upon approval of the listing application by the SC or Bursa Malaysia.

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