How are the investors' funds protected during ECF process?

Investors' funds are safeguarded through the use of a Shariah-compliant trust account. All invested funds are initially held in this trust account, managed by a trustee, which ensures security and segregation from the issuer's accounts. Funds are released to the issuer only when the ECF campaign is successful—meaning the targeted amount is met within the campaign period, maintained after a cooling-off period of six (6) business days, and all conditions precedent set forth by AMB Connect are fulfilled.

However, if the targeted amount is not met within the campaign period, or if the targeted amount is met within the campaign period but subsequently fails to be maintained by the last day of the cooling-off period of six (6) business days, such an ECF campaign is deemed unsuccessful, whereupon we will instruct the trustee to refund the funds raised thus far to the investors, without any charges.

This mechanism ensures that all investors' funds are safeguarded until all necessary conditions are met, providing transparency and security for both investors and issuers.

Last Update: 22 July 2024