IBANK 10.3.18 Treatment of Musharakah Sukuk

(1) The treatment of musharakah sukuk must be based on the intent of the underlying investments in musharakah as set out in this rule.
(2) For a private commercial enterprise that undertakes trading activities, the risk-weight must be as set out in Division 4.5.D (equity-based contracts) and Chapter 6 (market risk).
(3) For a private commercial enterprise that undertakes a business venture or project (other than an enterprise that undertakes trading activities), the risk-weight for equity participation risk in respect of an equity exposure in a business venture or project must be measured according to Division 4.5.D (equity-based contracts) and Chapter 6 (market risk).
(4) For a joint ownership of real estate or movable assets as income-producing musharakah investments with murabahah subcontracts, the risk-weight must be based on the murabahah subcontracts and the counterparties in those contracts.
(5) For a joint ownership of real estate or movable assets as income-producing musharakah investments through leasing to third parties by means of ijarah, the risk-weight must be based on the counterparty (that is, the lessee).
Derived from QFCRA RM/2015-2 (as from 1st January 2016).