Offer of Securities / Sukuk

Securities & Islamic Securities

  • Any investments commonly known or capable of being described as securities as defined under the LFSSA 2010 and LIFSSA 2010, which includes:
  1. shares, debentures, funds, units or interests in a limited partnership, limited liability partnership, unit trust, foundation, protected cell company or corporation
  2. debentures, bonds or notes of or issued by any body (incorporated or unincorporated), government, local government or public authority
  3. certificates of interest or participation in, temporary or interim certificates for, receipts for, or warrants to subscribe to or purchase any of the investments described under items (a) and (b) above; and
  4. securities as defined under the LFSSA.

For Islamic securities, in addition to items (a), (b) and (c) above, those which are issued are expressly to be in compliance with Shariah principles, including sukuk.

Eligibility

Approval Requirements

  • Any person who makes an offer for subscription or purchase, or issues an invitation to subscribe for or purchase securities in or from within Labuan IBFC, must obtain the approval from Labuan FSA under Section 8(1) of the LFSSA and Section 13(1) of the LIFSSA, unless the offers or invitations of securities are excluded from the approval requirements of Labuan FSA as specified under Section 8(5) of the LFSSA or Section 13(5) of the LIFSSA.
  • In relation to sukuk, the endorsement of a Shariah adviser must be obtained apart from the approval requirements from Labuan FSA prior to the offer for subscription or purchase, or issue of invitation to subscribe for or purchase sukuk in or from within Labuan IBFC.

Exclusion of Approval

The following offers or invitations of securities are excluded from the requirement to obtain approval from Labuan FSA:

  1. For an offer or invitation of securities, where:
  2. the offer or invitation is addressed to an identifiable category of persons to whom it is directly communicated by the person making the offer or invitation or by his appointed agent and the number of persons to whom the offer or invitation is communicated does not exceed fifty (50); or
  3. the members of that category to which the offer or invitation is made are the only persons who may accept the offer or invitation and they are in possession of sufficient information to be able to make a reasonable evaluation of the offer or invitation and the number of persons to whom the offer or invitation is communicated does not exceed fifty (50).
  4. For an offer or invitation of debentures or sukuk, where:
  5. the first-time investment of each of the initial debenture or sukuk holders is not less than RM250,000 or its equivalent in any other currency and they are in possession of sufficient information to be able to make a reasonable evaluation of the offer or invitation; or
  6. the first-time investment of each of the initial debenture or sukuk holders is less than RM250,000 or its equivalent in any other currency and the number of persons to whom the offer or invitation is communicated does not exceed fifty (50) and they are in possession of sufficient information to be able to make a reasonable evaluation of the offer or invitation.
  7. An offer or invitation of securities in a mutual fund or Islamic mutual fund which satisfies the mutual fund or Islamic mutual fund requirements under Part III of the LFSSA or Part IV of the LIFSSA.
  8. An offer or invitation of securities pursuant to a take-over offer which complies with the relevant law applicable to such offer.
  9. An offer or invitation of securities or such classes or categories of securities as may be specified by Labuan FSA.