The Securities Commission Malaysia (SC) today issued the Shariah Parameters on Islamic Exchange-Traded Fund (i-ETF) based on gold and silver as guidance and reference from Shariah perspective to facilitate product development by industry participants.
The issuance of the Shariah Parameters on i-ETF is an initiative to further develop the Islamic capital market in Malaysia by providing the Shariah requirements for Islamic ETF based on gold and silver. It is the first Shariah Parameters issued by the SC and has been endorsed by the Shariah Advisory Council of the SC.
The Shariah Parameters on i-ETF mainly outlines the following features:
1. The Shariah requirements on trading of ribawi-based items which includes the classification of ribawi items and the requirements for trading of ribawi items.
2. The Shariah requirements for the establishment, structuring and trading of an Islamic ETF based on gold and silver as an underlying asset.
3. The roles of the Shariah adviser in an Islamic ETF based on gold and silver as an underlying asset.
The Shariah Parameters on i-ETF is available here.
SECURITIES COMMISSION MALAYSIA
