Practice Note 4 Issued Pursuant to the Guidelines on Offering of Islamic Securities

Date Issued: 24 April 2006

Application of the Guidelines on the Offering of Islamic Securities to an Issuance of Islamic Commercial Papers or a Combination of Islamic Commercial Papers and Medium Term Notes

1.

This note varies the application of paragraph 12.01 (b) of the Guidelines on the Offering of Islamic Securities (“IS Guidelines”) to an issuance of commercial papers (CP) or a combination of commercial papers and medium term notes (CP/MTN).

2.

Any issuance of CP or CP/MTN under an Islamic securities programme approved by the Securities Commission (SC) on or after 15 May 2006 shall be issued on scripless basis under the Real Time Electronic Transfer of Funds and Securities System (RENTAS).

3.

In the case of an Islamic CP or CP/MTN programme approved by the SC prior to 15 May 2006, the Islamic CP or CP/MTN may be issued on scripless basis under the RENTAS system, subject to the consent of noteholders and other relevant parties to the programme and upon compliance with the requirements set out by Bank Negara Malaysia. The SC will, upon receiving due notification from the issuer that the afore-mentioned conditions have been met, grant its approval to convert the Islamic securities programme to a scripless Islamic securities programme.