← Netting of Financial Agreements Act 2015

Netting of Financial Agreements Act 2015 s 5

s 5 Feature of qualified financial transaction

(1) For the purposes of this Act, a qualified financial transaction shall involve— (a) over-the-counter derivatives; (b) repurchase, reverse repurchase, buy-sell back in respect of securities; or (c) a lending or borrowing of unlisted debt securities under the Real Time Electronic Transfer of Funds and Securities System established under subsection 44(1) of the Central Bank of Malaysia Act 2009 [Act 701]. (2) In this section, “derivative” means any agreement including an option, a swap, futures or forward contract, whose market price, value, or delivery or payment obligation is derived from, referenced to or based on, but not limited to, securities, commodities, assets, rates (including interest rates, profit rates or exchange rates) or indices and shall include a derivative which is in accordance with Shariah.

Malay text (authoritative)

Ciri-ciri transaksi kewangan yang layak

(1) Bagi maksud Akta ini, suatu transaksi kewangan yang layak hendaklah melibatkan— (a) suatu derivatif melalui kaunter; (b) beli semula, beli semula berbalik, jual beli balik berkenaan dengan sekuriti; atau (c) pemberian pinjaman atau peminjaman sekuriti hutang tidak tersenarai di bawah Real Time Electronic Transfer of Funds and Securities System yang diwujudkan di bawah subseksyen 44(1) Akta Bank Negara Malaysia 2009 [Akta 701]. (2) Dalam seksyen ini, “derivatif” ertinya apa-apa perjanjian termasuk suatu opsyen, swap, kontrak niaga hadapan atau kontrak hadapan, yang harga pasaran, nilai, atau obligasi penghantaran atau pembayarannya berpunca daripada, dirujuk kepada atau berdasarkan, tetapi tidak terhad kepada, sekuriti, komoditi, aset, kadar (termasuk kadar faedah, kadar keuntungan atau kadar pertukaran) atau indeks dan hendaklah termasuk derivatif yang mengikut Shariah.

Read this section in the full act → · Open Part II →

Find Act 766 on lom.agc.gov.my ↗

Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).

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