List of Services

Our Islamic financing products are for clients interested in Shariah compliant financing packages.

Islamic Financing Products
Islamic Treasury Products
Islamic Stockbroking
Islamic Margin Financing
Shariah Committee

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: KIBBSPI@kenanga.com.my

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 : KIBBSPI@kenanga.com.my

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 with a piece of mind. 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*
Share = 2 times
Cash = 3 times
*Subject to approval

Collateralised Account-i (Kenanga Nominees) The securities will be under Kenanga Nominees and permanent limit shall be granted.

Limit*
Share = 2 times
Cash = 3 times
*Subject to approval

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 equitybroking@kenanga.com.my.

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.

Contact Details

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

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

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Dr. Kamaruzaman Noordin

Dr. Kamaruzaman Noordin is the Chairman of Shariah Committee of Kenanga Investment Bank Berhad. He is currently a Senior Lecturer at the Department of Shariah and Management, Academy of Islamic Studies of University Malaya. He holds a Bachelor of Shariah and Master of Business Administration from University of Malaya before obtaining his PhD in Islamic Studies from University of Wales, United Kingdom. He is also the Deputy Director of the International Institute of Public Policy and Management (INPUMA). He is a registered Shariah Adviser with the Securities Commission of Malaysia.

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Dr. Muhammad Arzim Naim

Dr. Muhammad Arzim Naim is a chartered accountant of the Malaysian Institute of Accountants (MIA), fellow member of the Association of Chartered Certified Accountants (ACCA), a practicing member of the Association of Chartered Islamic Finance Professionals (ACIFP). He has spent most of his professional career in auditing and assurances before joining the academia. He is currently a lecturer at the National University of Malaysia (UKM) and International Centre for Education in Islamic Finance (INCEIF) while heading his own accounting firm.

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Dr. Mohd Fuad Md. Sawari

Dr. Mohd Fuad Md. Sawari is currently an Assistant Professor at the Department of Fiqh and Usul al-Fiqh, Kuliyyah of Islamic Revealed Knowledge and Human Sciences of International Islamic University Malaysia. He holds a Bachelor of Shariah from University of Malaya, Master of Fiqh and Usul al-Fiqh from the University of Jordan and PhD in Fiqh and Usul al-Fiqh from International Islamic University Malaysia. He is a registered Shariah Adviser with the Securities Commission of Malaysia.

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Dr. Ahmad Sufian Che Abdullah

Dr. Ahmad Sufian Che Abdullah is currently a Lecturer at the Department of Shariah and Management, Academy of Islamic Studies of University Malaya. He holds a Bachelor of Shariah and Master of Shariah (Islamic Finance) from University of Malaya before obtaining his PhD in Islamic Economic and Banking from University of Yarmouk, Jordan. He is also the Shariah Adviser of Syarikat Takaful Malaysia Berhad.

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