Section 31
Retention of over-subscriptions in Sukuk issues
of Labuan Islamic Financial Services and Securities Act 2010
A 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—
(a)
that it expressly reserves the right to accept or retain over-subscriptions; and
(b)
a limit on the amount of the over-subscription that may be accepted or retained.
Labuan Islamic Financial Services and Securities 55
(2)
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—
(a)
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
(b)
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.
(3)
Any borrowing company who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit.