KUALA LUMPUR: Bursa Malaysia Bhd launched the world’s first Shariah-compliant alternative to the Securities Borrowing and Lending Negotiated Transaction (SBLNT) framework, called Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT).
“This new instrument would further develop the Shariah-compliant securities,” said Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan.
The ISSBNT framework, which is based on the SBLNT model that has been in existence since 2009, is expected to provide a more facilitative trading environment and improve trading liquidity and velocity of securities.
Tajuddin noted market participants will now have an alternative avenue which is compliant with Shariah principles.
He said the SBLNT was chosen as the preferred model to develop the ISSBNT framework because it is more widely used by the market due to its flexibility, as compared to other securities borrowing and lending model.
“In our domestic market, 61 per cent of the counters on Bursa are Shariah-compliant. I believe there is a need for an Islamic Shariah-compliant version.
“In the next 12 months following this launch of ISSBNT, I hope we can get an uplift of around 5 to 10 per cent growth in funds transaction,” he added.