Islamic Margin Financing

What are the available Islamic Margin Financing products?

  • 2-in-1 Stock Trade-i (M2-i) 
  • Normal Margin Financing-i (M3-i)

Islamic Margin  Financing products features:

 

What is the Shariah concept applicable?

The products are structured using the Shariah principles of Murabahah via Tawarruq arrangement.

Mechanism of Commodity Murabahah:

  • Following the Bank’s approval to grant Islamic margin financing to the client, the client will enter into Commodity Murabahah agreement that requires the bank to buy Shariah-compliant commodities from the commodity supplier/vendor A at the Bank’s Purchase Price.
  • The bank then sells the specified commodity to the Client at Bank’s Sale Price to be paid on deferred payment terms as agreed.
  • The Client will appoint the Bank as agent to sell commodity to Commodity Broker B at a price equivalent to Bank’s Purchase Price.

 

 Click on the links below to download the product disclosure sheets for each product :-

 

For more information, please email us at equitybroking@kenanga.com.my.

FINANCING