IBANK 10.2.1 Securitisation

(1) Securitisation, in relation to an Islamic banking business firm, is the process of creating and issuing sukuk or tranches of sukuk. In securitisation:
(a) payments of the principal and profits are derived from the cash flows generated by the securitised assets (that is, by the assets underlying the sukuk); and
(b) legal or beneficial ownership to the underlying assets is transferred to the investors in the form of sukuk.
A reference to securitisation includes re-securitisation.
(2) The structure of a securitisation must be Shari'a-compliant.

Note Under rule 10.1.2 (3), the assets that are the subject of sukuk (and the specific project or investment activity where the assets are) must also be Shari'a-compliant.
Inserted by QFCRA RM/2017-1 (as from 1st April 2017).