Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Chapter 2
31. Retention of over-subscriptions in Sukuk issues
Feedback & supportA borrowing company shall not accept or retain subscriptions to a Sukuk issue in excess of the amount of the issue as disclosed in the prospectus unless the borrowing company has specified in the prospectus—
borrowing company
“borrowing company” means a Labuan company that is or will be under a liability, whether or not such liability is present or future, to pay or repay any money received or to be received by it in response to an offer made pursuant to this Chapter to subscribe for or purchase Sukuk of the company;
that it expressly reserves the right to accept or retain over-subscriptions; and
a limit on the amount of the over-subscription that may be accepted or retained.
Labuan Islamic Financial Services and Securities 55
Subject to any regulations, where a borrowing company specifies in a prospectus relating to a Sukuk issue that it reserves the right to accept or retain over-subscriptions—
the borrowing company shall not make, authorize or permit any statement or reference as to the asset-backing for the issue to be made or contained in any prospectus relating to the issue, other than a statement or reference to the total assets and the total liabilities of the borrowing company and of its guarantor company, if any; and
the prospectus shall contain a statement or reference as to what the total assets and total liabilities of the borrowing company would be if over-subscriptions to the limit specified in the prospectus were accepted or retained.
Any borrowing company who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.