Equity Securities Overview

The Securities Commission Malaysia (SC) is the regulatory body responsible for overseeing and supervising the Malaysian capital market.

The SC Act 1993 gives the SC the authority to regulate and supervise the capital market in Malaysia.

The CMSA 2007 is the legislation that governs the activities within Malaysia's capital market, such as securities trading and licensing.

Bursa Malaysia is the stock exchange in Malaysia, providing a platform for trading equity securities like shares.

Bursa Malaysia ensures that companies listed on the exchange meet compliance requirements such as corporate governance, financial reporting, and disclosure.

Shariah-compliant investments are investments that adhere to Islamic principles and prohibit interest-based and certain speculative activities.

Exposure to institutional investors, like Islamic fund managers and Takaful operators, who focus on investments aligned with Islamic principles.

Shariah-compliant investments are seen as less risky due to the prohibition of interest and speculative activities, making them attractive to a wider range of investors.

The part ownership of a company, usually represented by shares or stocks, which can be publicly traded on stock exchanges.

Equity securities that comply with Islamic principles, prohibiting investments in activities considered forbidden (haram) in Islam, such as gambling, alcohol, and interest-based financial services.

Equity securities that don't adhere to Islamic principles and may invest in sectors considered 'haram' in Islam, such as gambling, alcohol, and interest-based financial services.

The process of scrutinizing a company to ensure its core activities and finances align with Islamic principles. This involves evaluating the company's business model and analyzing its financial ratios.

The process of converting investments considered forbidden (haram) in Islam into permissible (halal) ones by making donations to charity.

Investing in companies that are primarily focused on halal (permissible) business activities, avoiding sectors like alcohol, gambling, and conventional financial services that involve interest.

The buying and selling of shariah-compliant stocks on a stock exchange, following specific guidelines and regulations.

The rules and regulations enforced by Islamic financial institutions and governing bodies to ensure equity securities comply with shariah principles.

Shares that represent an undivided ownership of a company. Holders gain profits and dividends, have voting rights, and receive dividends after creditors and other security holders.

Shares that represent an undivided ownership in a business. They differ from ordinary shares in that they guarantee a fixed dividend and have no voting rights.

A type of preference share where unpaid dividends accumulate and are paid out later, even if they are missed.

A type of preference share where unpaid dividends don't accumulate and are lost if not paid when due.

A type of preference share that can be converted into ordinary shares after a certain time.

A type of preference share that can be bought back by the issuing company at a specific price and time.

A type of preference share that can be exchanged for another asset belonging to the issuing company.

A system of rules, regulations, and laws that govern the Islamic Capital Market.

A type of investment compliant with Islamic principles, often overseen by a Shariah Board that ensures adherence to Islamic law.

A type of investment that is governed by standard corporate practices and does not require religious oversight.

The process of verifying that a security or financial product complies with Islamic principles and rules.

A panel of Islamic scholars that advises on the Shariah compliance of financial products and instruments.

An online platform where investors can place orders to buy or sell Shariah-compliant securities.

An individual who acts as a broker for investors, helping them buy and sell Shariah-compliant securities.

The process of matching buyers' and sellers' orders for Shariah-compliant securities at the same price or quantity.

A document that confirms a completed trade for Shariah-compliant securities, including details of the transaction, the investor's account information, and the counter-party (the other party in the trade).

Documents provided to investors detailing the financial information of a transaction for Shariah-compliant securities, including brokerage fees, stamp duty, and clearing charges.