Comparison between bonds and sukuk traded on the exchange and OTC - Retail Bonds and Sukuk Market in Malaysia

Comparison between bonds and sukuk traded on the exchange and OTC

Framework	Exchange	OTC
Primary Market	This is the market where bonds and sukuk are first offered to the retail investors via subscriptions. The issuer may make an offer to the public, to subscribe for its bonds and sukuk through an issuing house or appointed bank. Successful subscribers will be allotted with the subscribed bonds and sukuk prior to the listing on the exchange. Procedures and terms & conditions of subscription will be stated in the prospectus or offering document.	The issuer will make an offer to investors to subscribe for the bonds and sukuk through banks.
Secondary Market	Bonds and sukuk are traded on the exchange.	Bonds and sukuk are traded by investors through banks.
Price of bonds and sukuk	Price of bonds and sukuk are quoted on the exchange	Investors should contact the relevant banks for prices of bonds and sukuk
Where and how to trade	Investors can place their buy and/or sell orders with their stockbroking company If you don’t already have a Central Depository System (CDS) account you would need to visit a stockbroking company to open a CDS account. The broker will provide the investors with the details on how to execute a buy or sell order	Investor can buy and/or sell the bonds and sukuk with the relevant banks Investors need to visit the relevant bank to open an account. The bank will guide investors on how to trade bonds and sukuk
What is the minimum board size	RM1,000 (10 units x RM100 each)	Depends on the terms set by the banks
Where can I obtain information?	Prospectus or principal terms and conditions of bonds and sukuk Through continuous disclosures made pursuant to Bursa Malaysia’s Listing Requirements	Prospectus or principal terms and conditions of bonds and sukuk. Through continuous disclosures made pursuant to the SC’s guidelines
	You may also access information through: Bursa Malaysia’s website banks from whom you purchased the bonds and sukuk media announcements that may be made from time to time any other platform as may be designated by the SC

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