Malaysian Treasury Bills and Malaysian Islamic Treasury Bills
Malaysian Treasury Bills (MTB) MTB are concise balance issued by the Government of Malaysia to accession concise funds for Government's alive capital. Bills are awash at abatement through aggressive auction, facilitated by Bank Negara Malaysia, with aboriginal maturities of 3-month, 6-month, and 1-year. The accretion will be fabricated at par. MTB are issued on account base and the bargain will be captivated one day afore the affair date. The acknowledged bidders will be bent according to the best aggressive crop offered.
Normal bargain day is Thursday and the aftereffect of acknowledged bidders will be appear one day after. MTB are tradable on crop base (discounted rate) based on bands of actual administration (e. g. , Band 4= 68 to 91 canicule to maturity). The accepted trading bulk is RM5 million, and it is actively traded in the accessory market. Malaysian Islamic Treasury Bills (MITB) MITB are concise balance issued by the Government of Malaysia based on Islamic principles. MITB are usually issued on a account base with aboriginal maturities of 1-year.
Normal bargain day is Thursday and the after-effects of acknowledged bidders will be appear one day after, on Friday. Both accepted and Islamic institutions can buy and barter on MITB. The MITB are structured based on Bai' Al-Inah principle, allotment of advertise and buy aback concept. Bank Negara Malaysia on account of the Government will advertise the articular Government's assets on aggressive breakable basis, to anatomy the basal transaction of the deal. Allotment is based on accomplished bulk tendered (or everyman yield).
Price is bent afterwards accumulation aspect is accepted (discounting factor). The acknowledged bidders will again pay banknote to the Government. The bidders will after advertise aback the assets to the Government at par based on acclaim term. The Government will affair MITB to bidders to represent the debt created. MITB are tradable on crop base (discounted rate) based on bands of actual administration (e. g. , Band 4= 68 to 91 canicule to maturity). The accepted trading bulk is RM5 million, and it is actively traded based on Bai ad-Dayn (debt trading) assumption in the accessory market.
Order a unique copy of this paper