PASLA endorses Bursa Malaysia鈥檚 Shariah-compliant model
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PASLA endorses Bursa Malaysia鈥檚 Shariah-compliant model 20 January 2026Malaysia Reporter: Hansa Tote
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The Bursa Malaysia Islamic Securities Selling and Buying 鈥� Negotiated Transaction (ISSBNT) model has been endorsed as a vital addition to the regional securities financing toolkit for Shariah-compliant products.
The endorsement comes following a review by the Pan Asia Securities Lending Association鈥檚 (PASLA) Association of Southeast Asian Nations (ASEAN) and legal working groups and executive team.
The ISSBNT model is a Shariah-compliant alternative to the conventional Securities Borrowing and Lending - Negotiated Transaction (SBLNT) Model
The model is structured based on two outright bai` (sale) transactions that includes the feature of wa`dan (two unilateral promises/undertakings), khiyar al-shart (conditional option) and the provision of collateral as security for the indebtedness.
In an online statement, PASLA states: 鈥淲e commend Bursa Malaysia, a valued PASLA member firm, for their innovative efforts in developing a transaction framework that achieves results equivalent to conventional securities borrowing and lending transaction, while strictly adhering to Shariah principles.鈥�
PASLA says they recognise the importance of advancing Shariah-compliant products within the Malaysian capital markets, in line with similar initiatives across other regions.
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