The Securities and Exchange Commission (SEC) has released draft rules for sukuk issuance in the Philippines and opened them for public comment. The proposal aims to ensure Shari’ah compliance, improve transparency, and strengthen investor protection in line with global Islamic finance standards.
Under the draft, sukuk meant for public offering must be registered with the SEC and may be listed or traded on duly registered exchanges or fixed-income markets. The rules apply to all sukuk offerings that are not exempt from the Securities Regulation Code.
The SEC is proposing clearer Shari’ah governance requirements, including the need for every issuer to form a Shari’ah Committee or appoint a Shari’ah advisor. They will certify compliance, monitor transactions, and oversee Shari’ah audits throughout the life of the sukuk.
Special purpose entities (SPEs) may be created specifically to issue sukuk and hold the underlying assets. Eligible issuers include listed and non-listed companies, national and local government bodies, GOCCs, BSP-supervised banks—including Islamic banks—and SPEs formed by these entities.
The draft also outlines permitted Shari’ah-compliant structures, such as Sukuk Ijarah (lease-based), Sukuk Murabahah (cost-plus financing), Sukuk Istisna (construction or manufacturing financing), Sukuk Wakalah (agency-based), Sukuk Mudarabah (profit-sharing), and Sukuk Musharakah (joint venture). Other structures may be approved by the SEC if they meet Shari’ah standards.
The SEC said the proposed framework is designed to promote transparent sukuk structures, protect investors, and support the growth of Islamic finance in the country.
