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Prohibitory transactions of Sukuk assets: the shari'ah analysis with reference to Islamic capital markets

Adam Sa'ad, Auwal and Ansari, Abdul Haseeb (2018) Prohibitory transactions of Sukuk assets: the shari'ah analysis with reference to Islamic capital markets. Journal of Islamic Law Review, 14 (1). pp. 99-107. ISSN 0973-2918

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Abstract

The paper discuses issues related to prohibitory transactions associated to Sukuk issuances in Islamic capital markets. The paper is elaborated based on the principles of prohibitory transactions such as gambling, riba (usury), gharar (excessive risk) non-halal products and services. The paper discussed issues related to future assets and services in which Islamic jurists have difference of opinion in accepting part of it as genuine Islamic assets for Sukuk transaction purposes. The paper also touches issues of the prohibitions and purification of income related to an Islamic financial institution. The paper suggests that rules related to Islamic contracts of sale such as bay’Muajjal, Murabahah, Salam, Istithna’, Ijarah should be strictly followed in any related sukuk issuance. Likewise partnership related contracts, such as Musharakah, Mudarabah, Wakalah and so on. It is also advised that Sukuk issuances must be strictly observing the Shari’ah principles of prohibitory transactions; couple with principle of purification of income where applicable.

Item Type: Article (Journal)
Additional Information: 8761/69131
Uncontrolled Keywords: Sukuk Asset, Shari'ah, Islamic Capital markets.
Subjects: H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5410 Marketing. Distribution of products
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
K Law > KBP Islamic Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws
Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Institute of Islamic Banking & Finance (IIiBF)
Depositing User: DR. Auwal Adam Sa'ad
Date Deposited: 14 Jan 2019 16:10
Last Modified: 16 Jan 2019 10:00
URI: http://irep.iium.edu.my/id/eprint/69131

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