SC issues syariah parameters on Islamic traded fund

PETALING JAYA: The Securities Commission Malaysia (SC) has issued shariah parameters on Islamic exchange-traded fund (i-ETF) based on gold and silver as guidance and reference from a Shariah perspective to facilitate product development by industry participants.
In a statement released yesterday, the SC said the shariah parameters are aimed at further developing local Islamic capital market by providing the shariah requirements for Islamic ETF based on gold and silver.
It added that 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 shariah requirements on trading of ribawi-based items; the establishment, structuring and trading of an Islamic ETF based on gold and silver as an underlying asset; 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 on the SC website at www.sc.com.my.