Labuan Capital Markets

In order to develop internationally-recognized standards and best practices in Labuan capital markets, Labuan subscribes to the International Organisation of Securities Commissions’ core principles of securities regulation to foster investors’ confidence. Additionally, the legal and regulatory framework in Labuan also provides a sound business environment with adequate protection and stability for the industry.

With the presence of the Labuan International Financial Exchange (LFX), the capital market industry in Labuan is further boosted as LFX was established as a cost-effective and practical alternative to other existing exchanges in the region.

The following are some platform in Labuan for fund raising in the international market :-

  • Mutual Fund
    • Private Fund
    • Public Fund
  • Offer of Securities / Sukuk
  • Mutual Fund
    • Private Fund
    • Public Fund
  • Offer of Securities / Sukuk

Public Fund

Public funds are those securities that are offered for subscription to any members of the general public.

Offer of Securities / Sukuk

As defined under the Labuan Financial Services and Securities Act 2010 (LFSSA) and Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA), “Securities” would include :-

  • shares, debentures*, funds, units or interests in a limited partnership, limited liability partnership, unit trust, foundation, protected cell company or corporation
  • debentures, bonds or notes of or issued by anybody (incorporated or unincorporated), government, local government or public authority;
  • certificates of interest or participation in, temporary or interim certificates for, receipts for, or warrants to subscribe to or purchase any of the investments described under items (a) and (b) above; and
  • securities as defined under the LFSSA.

For Islamic securities, in addition to items (a), (b) and (c) above, those which issued are expressly to be in compliance with Shariah principles, including Sukuk**

Note:

*debenture includes debenture stocks, bonds, notes and any other evidence of indebtedness of a corporation for borrowed monies, whether or not constituting a charge on the assets of the corporate as defined under Section 2 of the LFSSA

**Sukuk includes any certificates, instruments, notes and any other evidence of payment obligations of a corporation, body (incorporated or unincorporated), government, local government or public authority pursuant to any form of financing in accordance with Shariah principles, whether or not constituting a charge on the assets of the corporation, body (incorporated or unincorporated), government, local government or public authority as defined under Section 2 of the LIFSSA.