The SAC was formed to advise the SC on matters relating to the Islamic capital market and among its noteworthy initiatives were efforts to analyse and scrutinise products and issues such as call warrants, transferable subscription rights (TSR), asset securitisation, and bai’ al-dayn.
"The Council’s research and advisory roles would encompass matters relating to the development of new instruments, and drafting of policies and regulations. The SAC is also expected to assist the SC in educating and enlightening members of the industry on the prospects of Islamic investment instruments and their potential as alternative means of investment. It will also serve as the focal point of reference on all issues relating to Islamic capital market and syari’ah such as Islamic unit trusts and other related products, schemes and institutions," the SC Chairman, Dato’ Dr. Mohd. Munir Abdul Majid said.
Specifically, the principal functions of the SAC would include the following:
- to advise the SC on the aims and operations of the Islamic capital market in order to ensure that they are consistent with Islamic principles;
- to provide an opportunity, and to expose jurists, scholars, intermediaries and investors, to Islamic financial products and Islamic jurisprudence;
- to ensure that activities in the securities and derivatives markets which are represented as Islamic would conform with syari’ah principles; and
- to study matters related to Islamic capital market operations in response to requests for advice from industry, investors and the Government.
The Minister of Finance has approved the following as members of the SAC:
- Seven syari’ah scholars:
a. Y. Bhg. Dato’ Sheikh Azmi Ahmad
Mufti of Pulau Pinang
b. Y. Bhg. Dato’ Dr. Abdul Halim Ismail
Executive Chairman
BIMB Securities Sdn. Bhd.
c. Y. Bhg. Prof. Dato’ Dr. Haji Othman Haji Ishak
Rector, Jamiah Islam Negeri Kedah
d. Y. Bhg. Associate Prof. Dato’ Md. Hashim Haji Yahya
International Islamic University Malaysia
e. Y. Bhg. Prof. Dato’ Dr. Haron Din
Syari’ah scholar
f. Ustaz Hj. Hassan Hj Ahmad
Syari’ah Faculty, University Malaya
g. Dr. Mohd. Daud Bakar
Deputy Dean Academic Affairs
International Islamic University Malaysia
In addition, two consultants to the Council have also been appointed. They are Encik Nor Mohamed Yakcop, Adviser, AGI Resources Sdn. Bhd. and Prof. Dr. Mohammad Hashim Kamali of the Islamic and Family Law Department, Kulliyyah of Law, International Islamic University Malaysia. Encik Nor was formerly advisor in Bank Negara Malaysia. Prof Kamali was born in Afghanistan, taught at a number of Canadian universities.
The SAC was formally established upon approval by the Minister of Finance, on 16 May 1996. The Council had its inaugural meeting in August 1996.
