An Introduction to Islamic Finance: Theory and Practice

Islamic Financial Intermediation and Banking 171 models expect the fi nancial intermediaries to participate in the full range of ...

172 AN INTRODUCTION TO ISLAMIC FINANCE This risk of losing depositors raises a more serious exposure, termed “displacement risk. ...

173 CHAPTER 9 Capital Markets T he role of capital markets in promoting an effi cient fi nancial system can- not be overemphasiz ...

174 AN INTRODUCTION TO ISLAMIC FINANCE markets are at a comparatively early stage of development. Conventional cap- ital markets ...

Capital Markets 175 Islamic Funds Islamic investment funds emerged in the late 1980s, operating on the basis of a principal–agen ...

176 AN INTRODUCTION TO ISLAMIC FINANCE With the growth of Islamic funds, a comprehensive array of indices which track the perfor ...

Capital Markets 177 acquire the stock on two conditions. First, the shareholder must express his disapproval against such dealin ...

178 AN INTRODUCTION TO ISLAMIC FINANCE Islamic Index Series (FTSE - GII). The market capitalization of the Glo- bal DJIMI as of ...

Capital Markets 179 Challenges for Equity Funds The following issues and challenges need to be addressed for the further growth ...

180 AN INTRODUCTION TO ISLAMIC FINANCE the availability of new fi nancial information, changes in capital struc- ture, and the d ...

Capital Markets 181 commodities, such as pork or alcohol, is prohibited. Many of the com- modity funds are developed by fi nanci ...

182 AN INTRODUCTION TO ISLAMIC FINANCE regarding buying and selling stocks are largely treated under the former, while sharehold ...

Capital Markets 183 therefore measures need to be taken to eliminate or discourage speculative behavior. Recent scholars have di ...

184 AN INTRODUCTION TO ISLAMIC FINANCE followed by the introduction of the Muqaradah Bond Act of 1981. Similar efforts were made ...

Capital Markets 185 fl ows generated by underlying assets in a pool are passed to the sukuk hold- ers (investors). It is similar ...

186 AN INTRODUCTION TO ISLAMIC FINANCE airport. But in other cases, a pool could be made from a set of heteroge- neous assets co ...

Capital Markets 187 to have high expectations and low risk. Anyone who purchases sukuk in the secondary market replaces the sell ...

188 AN INTRODUCTION TO ISLAMIC FINANCE is imposed to avoid dealing with riba while trading debt securities in the secondary mark ...

Capital Markets 189 and insurance expenditures. However, given that risk is protected through insurance and fi nancial risk may ...

FIGURE 9.4 Sukuk al ijarah structure Source: HSBC Amanah, Malaysia. 190 ...