What are the key differences between ISSBNT (Islamic Securities Selling and Buying – Negotiated Transaction) and SBLNT (Securities Borrowing and Lending – Negotiated Transaction)? – Bursa Assist

ISSBNT is based on the established framework of the SBLNT model. The key differences between SBLNT and ISSBNT are as follows:

SBLNT

ISSBNT

Application of a ‘lending-borrowing’ concept.
Mainly governed by Global Master Securities Lending Agreement (“GMSLA”) or Global Master Repurchase Agreement (“GMRA”).
No requirement to observe Shariah principles pertaining to interest, risks and liabilities, charges, etc.
List of eligible securities may consist of Shariah non-compliant securities.

Application of a trade, i.e. selling-buying concept consisting of two outright sale transactions.
Governed by ISSBNT agreement and two unilateral promises or undertakings (wa’dan).
Subject to validity of a trade contract from the Shariah perspective.
A subset of the SBLNT list of eligible securities consisting of only Shariah-compliant securities published by the SAC (Shariah Advisory Council) of the Securities Commission.
Only acceptable collaterals from a Shariah perspective.

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