Introduction:<\/b><\/p>\n
Of late, the global sukuk<\/a> market has witnessed a commendable degree of innovations as it continues to gain traction in the current markets and further expansion to new markets. It is noteworthy to highlight that several reasons have led to sukuk market innovations, but one of the main reason is the escalating call for Islamic finance to embrace the true objectives of Shariah<\/span>. This includes among others the incorporation of environment, social and governance (ESG) principles so as to reach a wider segment of society. One such sukuk market innovation is the recent introduction of Sustainable and Responsible Investment (SRI) sukuk. Furthermore, to further reiterate its sustainable values towards the environment and society, some of the SRI sukuk has utilised the potential of crowdfunding as one of its fundraising methods. <\/span><\/p>\n SRI Sukuk and Crowdfunding<\/b><\/p>\n In 2014, Malaysia being a global leading provider in sukuk announced in its country\u2019s Budget that it aspires to become a home for SRI. Following to that, Securities Commission of Malaysia (SC) revised its sukuk guideline by incorporating new requirements for the issuance of SRI sukuk. It is notable to highlight that the SRI sukuk framework is an extension of the existing sukuk framework and thus, all the other requirements in the sukuk guideline<\/a> <\/span>continue to prevail. The additional areas addressed in the framework for the issuance of SRI sukuk include utilisation of proceeds, eligible SRI projects, disclosure requirement, appointment of independent party and reporting requirement<\/span>. <\/span>Further details of the additional requirements for the SRI sukuk are set out in the revised sukuk guideline.<\/a><\/span><\/p>\n