The Securities and Exchange Commission (SEC) has released new guidelines governing the issuance of Sukuk, aiming to strengthen the country’s Islamic capital market and expand Shari’ah-compliant investment options for issuers and investors.
Sukuk are Islamic financial certificates that represent shared ownership or rights over assets, services, or projects structured in line with Shari’ah principles. Unlike conventional bonds, Sukuk are backed by tangible assets or ventures and comply with Islamic law.
The new rules set out a clear regulatory framework for Sukuk issuances. They cover registration requirements, allowable structures, reporting standards, and disclosure obligations. The SEC said the guidelines are designed to ensure transparency, protect investors, and maintain strict Shari’ah compliance.
SEC Chairperson Francis E. Lim described Sukuk as a strategic tool for raising capital locally and internationally. He said the updated framework supports the government’s push for financial inclusion and economic growth while encouraging broader investor participation in the Islamic finance sector.
Under the guidelines, issuers may use various Shari’ah-compliant structures, including hybrid arrangements, subject to SEC approval. Companies issuing Sukuk must either form an independent Shari’ah Committee or appoint a Shari’ah adviser to certify that all aspects of the transaction comply with Islamic law.
Sukuk offered to the public must be registered with the SEC. However, approval does not automatically guarantee listing or trading on an exchange, as issuers must still meet the rules of the relevant market.
The guidelines also allow the creation of Special Purpose Entities (SPEs) specifically for Sukuk transactions. These entities must be separately registered with the SEC, comply with international Sukuk standards, and follow applicable corporate laws. Publicly listed firms and non-listed stock corporations may also qualify as Sukuk issuers.
The SEC said the move is expected to deepen the domestic Islamic capital market and attract more investors seeking Shari’ah-compliant financial products.
