Background
The Shariah Advisory Council (the SAC) of the Securities Commission Malaysia has, at its 187th meeting held on 28 July 2016, deliberated on an enquiry from the industry relating to the applicability of the new SAC ruling on bai` `inah which was resolved at the 157th SAC meeting held on 27 February 2014 (New Bai` `Inah Ruling).
Issue
The issues under deliberation were related to the applicability of the New Bai` `Inah Ruling which took effect on 1 October 2014 in respect of the following:
(a) revision to terms of sukuk that had been issued based on previous SAC ruling on bai` `inah which was resolved at the 5th SAC meeting held on 29 January 1997 (Previous Bai` `Inah Ruling); and
(b) upsizing the limit of an existing sukuk programme.
Resolution
After due deliberation, the SAC has resolved that the implementation of the New Bai` `Inah Ruling is as follows:
(a) For sukuk proposals submitted on or after 1 October 2014, the New Bai` `Inah Ruling shall apply;
 (b) For revision to the terms of sukuk which was issued based on the Previous Bai` `Inah Ruling and the revision is not considered as a new submission pursuant to the requirements under the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework and the Guidelines on Issuance of Private Debt Securities and Sukuk to Retail Investors, the New Bai` `Inah Ruling shall not apply; and
 (c) For upsizing the limit of an existing sukuk programme which was issued based on the Previous Bai` `Inah Ruling:
(i) if there is provision for upsizing in the Principal Terms and Conditions (PTC)/Details of the Sukuk Facility, the New Bai` `Inah Ruling shall not apply even though the proposal for upsizing is considered as a new submission pursuant to the requirements under the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework and the Guidelines on Issuance of Private Debt Securities and Sukuk to Retail Investors; and
(ii) if there is no provision for upsizing of the programme limit in the PTC/Details of the Sukuk Facility, the New Bai` `Inah Ruling shall apply to the proposal for upsizing.