Bursa Malaysia enhances listing requirements to facilitate offering of Islamic REITs and ETFs with waqf features

27 April 2023

Bursa Malaysia Securities Berhad (“Bursa Malaysia”) has made amendments to the Main Market Listing Requirements to facilitate the offering of listed Real Estate Investment Trusts (“REITs”) and exchange-traded funds (“ETF”) which include features based on the Shariah principle of waqf (“Waqf Amendments”). These amendments came into effect on 3 April 2023.

Under the Waqf Amendments, Bursa Malaysia has enhanced the post-listing disclosure framework for Islamic REITs and ETFs to provide transparency on the relevant waqf arrangement. For example, an Islamic REIT or ETF is obliged to make an announcement immediately if there are any changes to the relevant waqf arrangement disclosed earlier in its prospectus, information memorandum or product highlight sheet, together with reasons for the changes and provide interim updates on the income distributions channelled for any waqf purposes, in the quarterly report of the Islamic REIT or semi-annual report of the Islamic ETF. The management company of an Islamic REIT or ETF must also disclose in the annual report how investors can obtain more information on the waqf recipients and progress of the waqf initiatives.