FAQ Q&A

Frequently Asked Questions

Frequently Asked Questions

Islamic Stockbroking

Islamic Trading

What are the available Islamic Trading accounts?
Below are the Islamic Trading accounts available:
Account Type Trading Account-i Cash Upfront Account-i Collateralised Account-i (Direct) Collaterised Account-i (Kenanga Nominees)
Criteria Recommendation by Remisier and Representative Dealer and subject to credit evaluation Based on cash deposited. Based on cash and Shariah compliant securities (subject to capping) deposited, times gearing as per Credit Policy. Based on cash and Shariah compliant securities (subject to capping) deposited, times gearing as per Credit Policy.
The securities will be in the name of Kenanga Nominees for the beneficiary of client.
What is the Shariah concept applicable?
  1. Wakalah (Agency)

    1. The products are based on direct buying and selling of Shariah-compliant securities listed on Bursa Malaysia.
    2. Kenanga Investment Bank Berhad (KIBB) (“the Bank”) will act as an agent for you to facilitate the buying and selling transaction with Bursa Malaysia.

  2. Wakalah Mutlaqah (Absolute Agency)

    Placement of Money

    1. The Shariah concept of “Wakalah Mutlaqah” or absolute agency applies where there is no condition put in place for the transaction and involves an unfettered authority granted by the principal to the agent.
    2. The Bank also has a full freedom to decide on your behalf e.g. pending the client’s decision to trade the Shariah-compliant securities, the Bank has the right to place the monies in the Shariah-compliant accounts at any Islamic banks based on wakalah mutlaqah concept.
What do I get from these products?
Account Type Trading Account-i Cash Upfront Account-i Collateralised Account-i (Direct) Collaterised Account-i (Kenanga Nominees)
Limit to trade The permanent limit shall be granted subject to the Bank’s Management Decision No gearing. Only based on cash deposited. The securities will be under the client’s CDS account. Permanent limit shall be granted.

Limit*:

Share = 2 times

Cash = 3 times

*Subject to approval
The securities will be under Kenanga Nominees and permanent limit shall be granted

Limit*:

Share = 2 times

Cash = 3 times

*Subject to approval
Will there be any Late Payment Charge (LPC) for the products?
Yes. LPC will be charged on the remaining contra loss that is outstanding after seven calendar days from the date the contra transaction takes place.