Islamic Banking
We offer customer who are interested in investment banking products and services that are Shariah compliant. All Kenanga’s Skim Perbankan Islam (“SPI”) and Islamic Stockbroking window products are approved by its Shariah Committee in tandem with the regulatory requirements.
List of Services
Our Islamic financing products are for clients interested in Shariah compliant financing packages.
Islamic Financing Products
Our Islamic financing products are for clients interested in Shariah compliant financing packages.
Commodity Murabahah Term Financing-i (“CMTF-i”)
A Shariah compliant financing product which refers to an arrangement that involves a purchase of an asset by the customer based on Murabahah principle and a subsequent sale of the same asset to a third party in order to gain cash money.
CMTF-i is a term financing facility to finance funding requirements, which are complementary by an investment banking corporate exercise or fee based activity.
Commodity Murabahah Revolving Credit-i (CMRC-i”)
A Shariah compliant financing product which refers to an arrangement that involves a purchase of an asset by the customer based on Murabahah principle and a subsequent sale of the same asset to a third party in order to gain cash money.
CMRC-i is a short term revolving financing facility to finance funding requirements, which are complementary by an investment banking corporate exercise or fee based activity.
Fees and Charges
Depending on the financing requirements, the general fees and charges include the following:
- Structuring fees – to be mutually agreed
- Brokerage fees – to be charged by the broker for the Commodity Murabahah transaction, which is presently at a rate of RM 15.00 for every RM 1,000,000 (or part thereof) of commodities traded
- Late payment charges – to be capped at the prevailing Average Financing Rate (AFR)
Note: The above excludes fees and charges of other professionals, including solicitors, which may be required for specific Islamic Financing transactions.
Contact Details
For enquiries or assistance, please email to: [email protected]
Islamic Treasury Products
Kenanga’s SPI products are approved by our Shariah Committee in tandem with the requirements stipulated by Bank Negara Malaysia.
What we offer
Commodity Murabahah Deposit-i
- CMD-i is a wholesale Islamic deposit product with a fixed rate of return conducted through buying and selling of commodities as the underlying transaction based on the Shariah concept of Murabahah (cost plus profit sale).
- The customer (known as Principal) will be the seller of the commodity while KIBB SPI (the Bank) that receives the placement will be the buyer of the commodity.
Contact Details
For enquiries or assistance, please email to : [email protected]
Islamic Stockbroking
We have what Shariah inclined and ethical investors are looking for.
Our selection of Islamic Stockbroking products provides you with the opportunity to trade Shariah-compliant securities. Only Shariah-compliant securities that are approved by the Shariah Advisory Council (SAC) of Securities Commissions (SC) are traded on our platform. No riba (interest) and other Shariah non-compliant elements.
Islamic Stockbroking by Kenanga is offered via Islamic stockbroking window services.
Types of products available under Islamic Stockbroking
We have both, Islamic Trading and Islamic Margin Financing products. You may refer to each section.
Eligibility
Anyone above 18 years old.
Where do I get the list of Shariah-compliance securities listed in Bursa Malaysia Securities Berhad?
You may view it on the Securities Commission website .
Is there a possibility of Shariah-compliant securities becoming Shariah non-compliant?
Yes, the SAC and SC will review the list of Shariah-compliant securities twice a year (May and November). Change of status could happen after the revision of the list.
If I have existing conventional trading/margin account, can I apply and open an Islamic account?
Yes, you may apply for an Islamic trading/margin account.
Do I need to close my existing conventional trading/margin account once my Islamic account is opened?
No, you are not required to close your existing conventional trading/margin account.
Fees and Charges
| Type of Fee | Fee and Charges |
|---|---|
| Brokerage | As per Bursa Malaysia’s Rule |
| Clearing Fee | For on market transaction, 0.03% of transaction value (payable by both buyer and seller) with a maximum of RM 1,000 per contract. |
| Stamp Duty | RM 1.00 per every RM 1,000 (or fractional part) of the transaction value of securities (payable by both buyer and seller). Stamp duty is capped at maximum of RM 200 per contract. |
| CDS Account Opening | RM 10.00 as charged by Bursa Malaysia Depository Sdn. Bhd. for a CDS account opening |
| CDS Share Transfer Fee | RM 10.00 per counter |
| CDS Reactivation Fee | RM 5.00 per counter |
| Additional fee for Islamic Margin Financing products: | |
| Commodity Trading Fee | RM 15.00 for every RM 1,000,000 (or part thereof) commodities traded |
What are the available Islamic Trading accounts?
| Account Type | Criteria |
|---|---|
| Trading Account-i | Recommendation by Remisier and Representative Dealer and subject to credit evaluation |
| Cash Upfront Account-i. | Based on cash deposited. |
| Collateralised Account-i (Direct) | Based on cash and Shariah compliant securities (subject to capping) deposited, times gearing as per Credit Policy. |
| Collateralised Account-i (Kenanga Nominees) | Based on cash and Shariah compliant securities (subject to capping) deposited, times gearing as per Credit Policy. The securities will be in the name of Kenanga Nominees for the beneficiary of client. |
What is the Shariah concept applicable?
Wakalah (Agency)
- The products are based on direct buying and selling of Shariah-compliant securities listed on Bursa Malaysia.
- Kenanga Investment Bank Berhad (KIBB) (“the Bank”) will act as an agent for you to facilitate the buying and selling transaction with Bursa Malaysia.
Wakalah Mutlaqah (Absolute Agency)
Placement of Money
- The Shariah concept of “Wakalah Mutlaqah” or absolute agency applies where there is no condition put in place for the transaction and involves an unfettered authority granted by the principal to the agent.
- The Bank also has a full freedom to decide on your behalf e.g. pending the client’s decision to trade the Shariah-compliant securities, the Bank has the right to place the monies in the Shariah-compliant accounts at any Islamic banks based on wakalah mutlaqah concept.
What do I get from these products?
| Account Type | Limit to trade |
|---|---|
| Trading Account-i | The permanent limit shall be granted subject to the Bank’s Management Decision. |
| Cash Upfront Account-i. | No gearing. Only based on cash deposited. |
| Collateralised Account-i (Direct) | The securities will be under the client’s CDS account. Permanent limit shall be granted.
Limit* |
| Collateralised Account-i (Kenanga Nominees) | The securities will be under Kenanga Nominees and permanent limit shall be granted.
Limit* |
Late Payment Charge (LPC)
LPC will be charged on the remaining contra loss that is outstanding after seven calendar days from the date the contra transaction takes place.
Contact Details
For more information, please contact us at 1800 88 2274 or email us at [email protected].
Islamic Margin Financing
What are the available Islamic Margin Financing products?
- 2-in-1 Stocktrade (M2-i)
- Normal Margin Financing-i (M3-i)
2-in-1 Stocktrade (M2-i)
| Definition | A short term Islamic margin financing for a period of 30 calendar days for each share purchase contract |
|---|---|
| Minimum financing amount | RM 20,000 |
| Margin call ratio | 150% |
| Force selling ratio | 130% |
| Minimum collateral coverage | 165% |
| Trading multiple | Cash = 2.5 times | Shares = 1.5 times |
| Profit rate (prevailing rate as at 1st April 2019) | 9.75% p.a. |
| Profit free-period | Client may enjoy profit-free period up to T+10 |
Normal Margin Financing-i (M3-i)
| Definition | An Islamic margin financing for a period of three (3) months, with option to rollover. |
|---|---|
| Minimum financing amount | RM 20,000 |
| Margin call ratio | 150% |
| Force selling ratio | 140% |
| Minimum collateral coverage | 180% |
| Trading multiple | Cash = 2.25 times | Shares = 1.25 times |
| Profit rate (prevailing rate as at 1st April 2019) | 9.50% p.a. |
| Profit free-period | Client may enjoy profit-free period up to T+2 |
| Settlement period of the principle portion of each purchase contract | Within three (3) months from purchase date with option of rollover |
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 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 buyer at a price equivalent to Bank’s Purchase Price.
Product disclosure sheets
Contact Details
For more information, please email us at [email protected].
Shariah Committee
Kenanga has established a Shariah Committee that comprises of four experts in Shariah and Islamic banking practitioners that will support the depth and breadth of Shariah related deliberations.
Committee
Dr. Ghazali Jaapar
Dr. Ghazali Jaapar is the Chairman of Shariah Committee of Kenanga Investment Bank Berhad. He is currently an Assistant Professor at the Department of Islamic Law, Ahmad Ibrahim Kulliyyah of Laws of International Islamic University Malaysia (IIUM). He holds a Bachelor of Shariah from University of Malaya, Master in Comparative Law (MCL) from International Islamic University Malaysia (IIUM) and PhD in Islamic Jurisprudence from University of Birmingham United Kingdom. He is also the Shariah Committee of EXIM Bank and Shariah Adviser of Skills Development Fund Corporation.
Dr. Mohammad Firdaus Mohammad Hatta
He is a Senior Lecturer of Arshad Ayub Graduate Business School, Universiti Teknologi Mara (UiTM) Shah Alam, Selangor. He received his first degree in Shariah Islamiyyah from University of Medina, Saudi Arabia. He then successfully completed his Masters in Fiqh and Usul Fiqh from the International Islamic University of Malaysia (IIUM) and obtained his PhD in Islamic Banking from University of Wales, Lampeter, United Kingdom. He also received a Diploma in Islamic Finance from Markfield Institute of Higher Education, United Kingdom. He is also the Shariah Committee of Great Eastern Takaful Berhad.
Dr. Fadillah Mansor
Dr. Fadillah Mansor is the Shariah Committee of Kenanga Investment Bank Berhad. She is currently a Head of Department of Shariah and Management, University of Malaya. She holds a Bachelor of Shariah (Honours) specialized in economics and a Master of Business Administration (MBA) in finance from University of Malaya, Kuala Lumpur. She obtained her PhD in Islamic finance from the La Trobe University, Australia. Her areas of research include Islamic banking and finance, Islamic investment and capital market, takaful and also Islamic management. She is also the panel assessor of the Malaysian Qualifications Agency (MQA) that responsible for programme accreditation in the areas as mentioned above.
List of Services
Our Islamic financing products are for clients interested in Shariah compliant financing packages.
Shariah Committee
Kenanga has established a Shariah Committee that comprises of four experts in Shariah and Islamic banking practitioners that will support the depth and breadth of Shariah related deliberations.
Committee
Dr. Ghazali Jaapar
Dr. Ghazali Jaapar is the Chairman of Shariah Committee of Kenanga Investment Bank Berhad. He is currently an Assistant Professor at the Department of Islamic Law, Ahmad Ibrahim Kulliyyah of Laws of International Islamic University Malaysia (IIUM). He holds a Bachelor of Shariah from University of Malaya, Master in Comparative Law (MCL) from International Islamic University Malaysia (IIUM) and PhD in Islamic Jurisprudence from University of Birmingham United Kingdom. He is also the Shariah Committee of EXIM Bank and Shariah Adviser of Skills Development Fund Corporation.
Dr. Mohammad Firdaus Mohammad Hatta
He is a Senior Lecturer of Arshad Ayub Graduate Business School, Universiti Teknologi Mara (UiTM) Shah Alam, Selangor. He received his first degree in Shariah Islamiyyah from University of Medina, Saudi Arabia. He then successfully completed his Masters in Fiqh and Usul Fiqh from the International Islamic University of Malaysia (IIUM) and obtained his PhD in Islamic Banking from University of Wales, Lampeter, United Kingdom. He also received a Diploma in Islamic Finance from Markfield Institute of Higher Education, United Kingdom. He is also the Shariah Committee of Great Eastern Takaful Berhad.
Dr. Fadillah Mansor
Dr. Fadillah Mansor is the Shariah Committee of Kenanga Investment Bank Berhad. She is currently a Head of Department of Shariah and Management, University of Malaya. She holds a Bachelor of Shariah (Honours) specialized in economics and a Master of Business Administration (MBA) in finance from University of Malaya, Kuala Lumpur. She obtained her PhD in Islamic finance from the La Trobe University, Australia. Her areas of research include Islamic banking and finance, Islamic investment and capital market, takaful and also Islamic management. She is also the panel assessor of the Malaysian Qualifications Agency (MQA) that responsible for programme accreditation in the areas as mentioned above.