Thursday, 3 September 2015
Last updated 4 hours ago
Mar 31 2009 | 2:03am ET
Eyeing the growing Shariah-compliant hedge fund market, Malaysia’s stock exchange is readying a platform to facilitate short-selling, which is generally barred by Islamic law.
Bursa Malaysia’s regulated platform would likely involve short-sellers actually buying, rather than borrowing, the shares they are betting against. Islamic law forbids selling things that one doesn’t actually own; the stock market’s plan would have hedge funds and other investors buy the stock for a fraction of its value while simultaneously agreeing to sell it back to the seller at a later date, Reuters reports.
“This will help in bringing in Islamic hedge fund activities,” Bursa Malaysia CEO Yusli Mohamed Yusoff told Reuters. “Short-selling is an essential ingredient for capital markets to perform efficiently.”
Yusoff added that the precise structure of the short-selling system is still “being worked on.”
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…