REGULATED SHORT SELLING IN BURSA MALAYSIA: EVALUATING THE USURY ISSUE

Regulated short selling transactions is an alternative that was introduced by the Syariah Advisory Council (SAC), which attached to Securities Commission Malaysia, implement in Malaysia. Short not permitted because it involves various Shariah-related issues, including usury, uncertainty (ghārar), gambling, speculation etc. Since has advantageous terms of liquidity and opportunities for investors reap profit when value securities fall, hence, regulated activities should be restructured so can implemented without transgressing boundaries syarak. This qualitative study used content analysis approach examine determine whether element usury still exists selling. Findings show adopted Bursa Malaysia combined with Borrowing Lending (SBL) mechanism. Therefore, implementing solve issue are SBL, uses ijarah bi istihan principle.