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Intervention

2.7 The Bank has the right to intervene, if necessary, during the process of

tendering by;

a) Downsizing or upsizing the total issue size

b) Capping the maximum single allotment limit on each bidder. The

maximum allotment limit is the maximum successful amount that will

be allotted to a single bidder

c) The Bank has the right to implement other types of intervention

method, which are not stated in this guideline.

d) The Bank also has the right to abort/cancel the tender.

Tender Results and Settlements

2.8 After allotment process in FAST, the tender results will be broadcasted

through BIDS and information providers such as Reuters, Bridge and

Bloomberg. Once tender process is confirmed, FAST will generate the

General Results and Individual Results.

2.9 General results are accessible to all FAST and BIDS members. For

Individual Results, only the direct members can retrieve their own

results. Non-FAST members are to confirm their individual results

manually with the direct members that they have submitted their bids

through.

2.10 All successful direct bidders will be able to print the sale confirmation

and purchase confirmation based on the successful rates and terms.

Direct bidders shall fax the confirmation to successful indirect bidders.

2.11 The tender results will be interfaced with RENTAS for allotment of

securities and funds transfer. The securities allotment and funds

transfer will be done in accordance to RENTAS Rules.

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3. Others

3.1 Trading of ITB

ITB will be traded based on the principle of Bai aldayn. Bai al-dayn

refers to the sale of a debt arising from a transaction in the form of a

deferred payment sale. The secondary market trading of ITB will be in

terms of yield. Therefore the banding system, which is associated with

Malaysian Treasury Bills is also applicable to ITB.

3.2 Status

In Real-Time Gross Settlement (RTGS) System, ITB will be accorded asa Government paper status.

3.3 Legality of ITB

In order to manage the legal risk that may be implicated in the issuance,

holding, and trading of ITB and to protect the Bank's interest, all

participants are required to understand the Sale and Purchase

agreement which is incorporated in FAST system, to establish the

parties' rights and obligations relating to ITB.

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The Issuance Process of ITB

4. Through the sale and purchasetransaction, a debt has been created.This debt is securitized through theissuance of ITB

1. Identify Assets

3. Government buy backthe Certificate ofGovernment assets atpar value (100.00) to bepaid on credit term

2.Sell assets on a tenderbasis

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Go

vernme

Certificate ofGovernmentAssets

IslamicBankingInstitutions

ITB