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Security commission

Security commissions were established in1 March 1993 under Securities Commission Act 1993. It is self-funding statutory body with investigative and enforcement power. SC reports to the Minister Of Finance and its accounts are tabled in parliament annually.

The Security commission functions include:

• Supervising exchanges, clearing houses, and central depositories.

• Registering authority for prospectuses for corporations other than unlisted recreational clubs.

• Approving authority for corporate bond issues.

• Regulating all matters relating to securities and futures contracts.

• Regulating the take over and mergers of companies.

• Licensing and supervising all licensed persons.

• Encouraging self-regulation, ensuring proper conduct of market institutions and licensed person.

SC are responsibility to protect the investor. SC is also obligates by statue to encourage and promote the development of the securities and futures market in Malaysia.

Shariah advisory council of the SC

SAC of the SC is the committee established by SC in 1996 under section 18 of the securities commission act 1993 (SCA). SAC was given the mandate to ensure that the running of the Islamic Capital Market (ICM) complies with Shariah principles.

Role of SAC

• Its scope jurisdiction is to advise the SC on all matters related to the comprehensive development of the ICM, and functions as a reference centre for ICM-related issues.

• The members of SC consists of Islamic scholars/jurists and Islamic finance experts.

Two basics sources of research used in the Islamic Capital Market:

• PRIMARY SOURCES: Al-Quran and As-Sunnah.

• SECONDARY SOURCES: Ijmak ( Concensus of opinion) , Qiyas (Analogical deductions) , Maslahah (Public interest), and other sources that are related with Shariah.

Shariah-compliant securities.

List of Shariah-compliant securities identifies Bursa Malaysia listed companies whose activities conform to the Shariah criteria established...