SEC proposes guidelines for sukuk bond issuance in PH

The Securities and Exchange Commission (SEC) has released proposed guidelines to enable the issuance of sukuk bonds in the Philippines, aiming to develop the Islamic capital market and broaden investment options.

These guidelines, issued for public comment on November 26, establish a regulatory framework for sukuk issuances, ensuring adherence to Shari'ah principles and safeguarding investors.

The draft includes improved disclosure standards, clearer Shari'ah governance, and stronger investor protections, mirroring international sukuk practices.

Sukuk are defined as certificates representing undivided investment interests or rights in underlying assets, usufructs, services, or projects compliant with Shari'ah.

The proposed rules will govern all sukuk issuances not exempted under the Securities Regulation Code (SRC).

Sukuk offered to the public must be registered with the SEC and can be traded on registered exchanges or organized markets.

The government is working to expand investment opportunities through these initiatives.