Sijil Tinggi Muamalat 2 - Pengenalan kepada sistem kewangan islam : HAJI MOHD NAZRI CHIK (BIMB)

PENGENALAN KEPADA SISTEM
KEWANGAN ISLAM
HAJI MOHD NAZRI CHIK
PENGURUS BESAR/ KETUA BAHAGIAN SYARIAH
Strictly Private & Confidential

OBJEKTIF PEMBELAJARAN HARI INI
Shariah Division Page 2
Di akhir kursus subjek ini, peserta
akan dapat:
1. Memahami maksud ekonomi,
kewangan dan perbankan.
2. Memahami sistem kewangan
Islam dan cakupannya.

o What Exactly Is Islamic Finance?
o Shariah: The Bedrock of Islamic Finance
o Takaful: Protection in Islamic Ways
o Islamic Capital Market
 Sukuk Market
 Equity Market
AGENDA
Shariah Division

WHAT IS ISLAMIC FINANCE?
 Is it all about money?
 Is it concerns resource allocation, management,
acquisition and investment?
 SUMMARY – a broad term and takes into
account many aspects of the economy and
financial system since its deals with matters
related to money.
Islamic finance is built upon distinctive and unique characteristics which are based upon certain principles
underlined by the Shariah (Islamic law).

STRATEGIC OVERVIEW OF ISLAMIC FINANCE
 Likewise conventional finance, Islamic finance deals with resource allocation, management,
acquisition and investment.
 Islamic finance is built upon some distinctive and unique characteristics which are based on rules
and principles underlined by Shariah.
Banking System &
Financial
Intermediaries
Capital Market
Indirect Funding
Direct Funding
REAL SECTORFINANCIAL SECTORREAL SECTOR
Surplus Units Deficit Units
 Households
 Corporate
 Government
 Foreign
Investor
 Households
 Corporate
 Government
 Foreign
Investor
Source: Adopted from Professor Dr Obiyathulla Ismath Bacha (2010)

PROMINENT ELEMENTS OF ISLAMIC FINANCE
• Direct link to real economy
• Money is not a commodity, just a
medium of exchange
• Certainty-supported by underlying
activities (prohibition of gharar i.e.
uncertainty/ ambiguity/
misinformation or deceit/ fraud)
• Different contractual relationships
• Promotion of equity-based
• Risk and reward sharing which
helps ensure greater market
discipline
• Prohibition of unethical elements,
and activities e.g. hoarding
• Prohibition of maisir (gambling), riba
(usury), zulm (oppression)
• Prohibition in financing of non
permissible transactions
• Emphasis on fairness and justice
• Safety net mechanism for the poor
e.g. zakat, waqf etc
• Greater transparency & disclosure:
 Additional Shariah governance
 Unique risks specific to Islamic
finance
• Greater fiduciary duties &
accountability
Shariah
values
consistent
with
universal
values
It was proven that IFI to be more resilient in times of crisis, mostly thanks to its intrinsic stabilizers (or
checks and balances) and in-built shock absorbent mechanisms which act as inherent hedge against
distress and crisis.

VATICAN SAYS…

EVOLUTION OF ISLAMIC FINANCE
 First references to interest-free finance appeared in 1940s and more
serious discussions and debates on fundamentals of Islamic finance took
place in 1950s and 1960s
 Modern forms of Islamic financial institutions can be traced back to:
 1962 - Tabung Haji
 1963 - a small banking experiment set up “under cover” in Mit
Ghamr, Egypt, based on a German savings bank model but
modified to comply with Shariah in particular profit-sharing (lasted
1967)
 The institutional development of Islamic finance in particular its banking
segment began to gather speed with the establishment of:
 Dubai Islamic Bank in 1973 (first commercial Islamic bank)
 Islamic Development Bank in 1974 (in the world)
 Bank Islam Malaysia Berhad in 1983 (in Malaysia level)
 End 2009 – Islamic assets of the global IFI are worth about US$1 trillion
and more than 600 Islamic financial institutions operating in at least 75
countries in the Muslim and the Western world.

EVOLUTION: BEYOND NATION WITH MUSLIM POPULATION
 Burgeoning interest in Islamic finance over the past decade among:
– the so-called non-Muslim nations such as Australia, China, Germany, France, Holland, Italy,
Hong Kong, Japan, Luxembourg, New Zealand, Russia, Singapore, South Africa, South Korea,
the UK and the US
– the so-called non-traditional key Islamic finance markets in particular countries in Central
Asia such as Kazakhstan, Kyrgystan, Tajikistan, Turkmenistan and Uzbekistan; in Eurasia such
as Azerbaijan and in Africa such as the Comoros, Gambia, Kenya, Mali, Nigeria, Senegal,
TanzaniA

WHAT THE FUTURE HOLDS?
Early start
Take off
Fast
growth
Maturity
Islamic finance probably stands
here; best time in terms of
business development as
relatively still early in the “fast
growth” phase
High
Medium
Low
Saturation

AN INTEGRATED ISLAMIC FINANCIAL SYSTEM – MALAYSIA
Islamic Financial System
Islamic Banking
Islamic Capital
Markets
Equity DebtDerivatives
 Islamic Profit
Rate Swap
 Islamic
Foreign
Exchange
Swap
 Islamic Cross-
Currency
Swap
 Islamic Unit
Trusts
 Islamic REITs
 Islamic
Stockbroking
 Islamic Indexes
 Shariah
Compliant
Securities
 Islamic
Securities
 Islamic
Medium
Term Notes
 Islamic
Commercial
Papers
 Exchangeabl
e Sukuk
Islamic Interbank
Money Market
Takaful/Re-
Takaful
Islamic Asset/Fund
Management
 Takaful /Re-
Takaful
 Takaful
linked
investments

WHAT IS SHARIAH?
 Literally means, “the road to the
watering place” or “the straight path to
be followed.”
 Divinely revealed principles
governing faith, conduct and legal
injunctions.
 Recorded in the Quran and deduced
in from the Sunnah
 Ready made and given guidance
 In most cases is in the form of general
principles:
 Prohibition of riba
 Conclusion of contract by consent
 Obligation of fulfill all obligations
 Recommendations of having
attestation and security/ collateral
Islam
Aqidah Shariah
Ibadah
Muamalah
Ammah
Munakahat Muamalat
Political
activities
Economic
activities
Banking
activities
Social
activities
Jinayat
Akhlak

DEVELOPMENT OF RULINGS
 Apart from complying to “conclusive” evidences from al-Qur’an and al-Sunnah, many Shariah
rulings relating to commercial contracts are based on their rationale, effective causes and benefits.
 The prohibition or permissibility in each case ceases or continues in accordance with its effective
cause. Rasulullah SAW said:
“Muslims are bound by the conditions they made; except a condition that legalises impermissible act
or invalidates permissible act.”
(Narrated by Imam al-Tirmizī)
To advise the Bank in determining Shariah status of the transactions, the Bank should establish its Shariah
Advisory Council comprises of learned Muslim jurists in the field of Usul al-Fiqh (jurisprudence) and Fiqh al-
Mu’amalat (Islamic law of transactions).

FUNDAMENTALS PROHIBITED ELEMENTS
 Shariah compliant transactions, structurally,
means;
 Abstinence of the prohibited elements which
must be first removed and cut off:
o Riba,
o Gharar,
o Maisir
 Observe that every contract possesses all the
essential elements (arkan) of contracts and
that every essential element meet the
necessary conditions (shurut).
 Does not involve illegal commodities e.g. pork
and liqour

ELEMENT 1: RIBA
 Theory of riba is FIXED and explicitly guided by
sources of Shariah.
Ubadah bin al-Samit RA narrated that Rasulullah SAW
said: “Gold for gold, silver for silver, wheat for wheat,
barley for barley, dates for dates, salt for salt – like for
like, equal for equal, and hand-to-hand (spot); if the
commodities differ, then you may sell as you wish,
provided that the exchange is hand-to-hand or spot
transaction.”
(Narrated by Muslim)

ELEMENT 1: RIBA
Transaction Riba
Deposit taking by
conventional bank.
Qard
Loan granted by
conventional bank.
Qard
Conventional credit card Qard +
Jahiliyyah
Compounded interest
penalty due on defaulted
customers.
Jahiliyyah
Conventional FX forward Fadhl
Delay in FX settlement >
T+2
Nasi’ah
Conventional insurance (in
addition to gharar and
maysir)
Qard

ELEMENT 2: GHARAR
 Dr Wehbah al-Zuhaily – “A contract that contains a risk to anyone of the
parties which could lead to his loss of properties.”
 Gharar may lead to exploitation and injustice in any form to any parties of
a contract.
 All financial transactions must be based on transparency, accuracy and
disclosure of all necessary information so that no one party has
advantages over the other party.
TYPES OF GHARAR
GHARAR FAHISH
(Major/
excessive gharar)
GHARAR YASIR
(Minor
Gharar)
GHARAR LA YUMKIN
IHTIRAZ ‘ANHU
(Unavoidable Gharar)
To ensure full consent and satisfaction of the parties and to avoid any
dispute due to unfairness in dealing.
“O believers! Do not eat up your property among
yourselves unjustly; except it be a trade amongst
you, by mutual consent.”
(Surah al-Nisa’: Verse 29)

ELEMENT 2: GHARAR
• Example: The seller is not in a position to hand over the subject matter to the buyer
• Example: Characteristics of the exchange counter-value, its species, quantities, date of delivery
etc.
• Prohibited because there exists the possibility of deceit or fraud in such a contract.
• Example: Seller says: “I sell to you this item at RM100 in cash today and RM110 to be paid in
one year.” Then buyer said: “I accept” without specifying at which price he buys the item.
1. Gharar due to non-existence of the exchange counter-values (settlement risk or counter
party risk)
2. Gharar due to inadequacy or inaccuracy of information (non-disclosure of material
information of the subject matter
3. Gharar due to the undue complexity of the contract (combining two sales in one
interdependent contract).

ELEMENT 3: MAISIR
Allah SWT says: “O believers! Alcoholic drinks
(khamr), gambling (maisir), slaughtering animals for
the idols (ansab) and looking for luck using arrows
(azlam) are practices of Satan. So avoid (strictly all)
that practices) in order for you to be successful.”
Surah al-Mā’idah [5]: 90
• Any activity which involves betting whereby the winner will
take the entire bet and the loser will lose his bet.
• Means games of pure chance where any party might gain at
the expense of the loss of the other party.
• Also known as qimar.

TAKAFUL VS CONVENTIONAL INSURANCE
Seller : Insurance company
Buyer : Subscriber
Subject : Financial guarantee
upon occurrence of events
Price : RM 1200 annually
Participant : Participant
Manager : Company (with fee)
Basis : Co-guarantee among the
participants during occurrence of events
(Takaful – tabarru’)
Contribution : RM 1200 annually

COMPONENTS OF ISLAMIC CAPITAL MARKET
 Generally is similar to conventional capital
markets, but differ in their core elements which
are deeply rooted in Shariah rules and
principles.
 Plays complement role to the investment role
of Islamic banking.
 Products:
 Sukuk/ Islamic stocks/ Islamic bonds/
Islamic securities
 Islamic funds
 Islamic real estate investment trust (REIT)
 Islamic risk management products
(derivatives)

WHAT IS SUKUK?
 Sukuk market is one of the fastest growing
segments of the Islamic capital market (“direct
funding market”).
 Usually translated as Islamic bond is the most
active Islamic debt market instruments (in addition
to Islamic equity market).
 Provide alternative funding avenue for corporate
entities and the government, besides the bank
funding.
 Benefits of sukuk:
 Larger funding amounts
 Provide liquidity to the investors as they can
trade it in the secondary market.
 Islamic financial system expanded into capital
market since the late of 1990s.
Definition and Origin of Sukuk
Originates from the Arabic word sukuk
(‫)صكوك‬ i.e. plural of sak (‫)صك‬
Islamic Financial Services Board (IFSB-
2) defines:
“Certificates that represent the
holder’s proportionate
ownership in an undivided
part of the underlying asset,
where the holder assumes all
rights and obligations to such
asset.”
Medieval Times – the word “cheque” or
“check” derived from “sak”

WHY SHARIAH PROHIBITS CONVENTIONAL BONDS?
Conventional Bond Asset Backed
Securities
Sukuk
Primary Level
Relationship
Lending and borrowing
transaction (loan); thus
haram.
Sale of debt or income
generating asset
Variety underlying Shariah
contracts (‘uqud)
Return to
Investors
Interest on loan. Income generated from
underlying asset
Profit elements in underlying
contracts (sale, lease or
partnership)
Recourse To issuer To asset To the rights and obligations of the
contracts.
Tradability in
Secondary
Market
Sale of debt Sale of debt or income
generating asset
Depends on nature of underlying
assets. Majority scholars allow
sale of tangible asset, some
intangible asset and interest in
ventures, except issues on
receivables.
 The main issue in the conventional debt market to interest bearing loan transaction.
 In case of zero coupon bond, investors will receive accumulated interest at maturity of the bond as the
bond will be issued at a discount.

FUNDAMENTALS SHARIAH REQUIREMENT
1. Funds raised must be used for Shariah compliant (halal)
activities.
2. Fund raised may be used to finance needed tangible assets.
Specificity of assets is important, since Sukuk unlike conventional
bonds cannot be used for general financial needs of the issuer.
3. Income received by sukukholders (investors) must be derived
from the cash flows generated by the underlying.
4. Sukukholders have a right to the ownership of the underlying
asset and its cash-flows.
5. Clear and transparent specification of rights and obligations of
all parties to the transaction, in particular the originator (customer)
and sukukholders.
6. No fixity in returns.

SUKUK STRUCTURES
 Most common sukuk classification is
based on underlying Shariah contracts.
 From Shariah perspective, there is no
preference for the usage of one contract
over the other.
Factors for considering a Sukuk
structure:
 Economic objectives of the Issuer.
 Availability of assets.
 Level of debt that the company has.
 Credit rating of the Issuer
 Legal framework
 Tax implication of a structure

PERMISSIBLE SUKUK STRUCTURES – AAOIFI
 AAOIFI has specified several categories
of permissible sukuk i.e. securitization of:
No Securitization of/ Purpose Contract
1 Existing or to be acquired tangible asset Ijarah
2 Existing or to be acquired leasehold asset Ijarah
3 Presale of services Ijarah
4 To fund construction Istisna’
5 Presale of the production of goods or commodities at a future date Salam
6 To fund the acquisition of goods for future sale Murabahah
7 To fund capital participation in a business or investment activity Mudarabah/
Musharakah
8 To fund various asset, goods or services acquisition which are then
entrusted to an agent to manage on behalf of the owners.
Wakalah
9 To raise funds for agricultural land cultivation, land management and
orchard management activities
Muzara’ah

SUKUK IJARAH – OVERVIEW
 Under this structure, the Issuer must have taken a particular “asset” from the Investor on lease (Ijarah).
Normally, there asset is originally that of the Issuer, and sold to Investors (normally intermediated by a
SPV), before being leased back to the Issuer for a rental.
 The lease contract has created a financial indebtedness/ obligation i.e. obligation to pay the lease rental.
To evidence this, the Issuer issue Sukuk Ijarah to the Investor. The Investor may sell the Sukuk to the
secondary market based on selling of debt which is backed by a tangible asset.
Segari Energy Ventures Sdn Bhd (SEV) Sukuk Ijarah
Investors
SEV
1. Sale of assets by SEV to the Financier for RM 522 million
Financiers/
Primary
Subscribers
2. Financiers lease back assets to SEV in return for Ijarah rental streams
3. SEV issue RM522 million Sukuk Ijarah as documentary evidence of
lease rental arrangement
4. Sale of Sukuk Ijarah

SUKUK IJARAH – SHARIAH REQUIREMENTS
1. The rental payments maybe structured such that it
comprises of (i) profits on the rental and (ii) redemption
amount on the principal.
2. Sukuk Ijarah does not represent debts; but undivided
proportionate ownership of the leased asset
(participatory certificates).
3. Because the Sukuk Ijarah are not debts nor monetary,
the issue of sale of monetary-debts with a discount do
not arise. Hence Sukuk Ijarah maybe traded in the
secondary market freely.
APPLICATIONS
 Segari Venture
(Malaysia)
 Guthrie Sukuk Ijarah
(Malaysia)
 Government of Bahrain
Sukuk Ijarah
 Government of
Malaysia’s Global
Sovereign Sukuk
 Qatar Sukuk
 Caravan Sukuk

SUKUK IJARAH
Sukuk Ijarah – Malaysia
Global Sukuk
Incorporated
Federal Land
Commissioner
SPV (Malaysia
Global Sukuk
Inc.)
Government of Malaysia (GOM)
2. SPV enters into a Master Ijarah
Agreement with GOM (lease of land
parcels)
7. At maturity, SPV sells the land to
GOM at an agreed price.
1. Sells “beneficial
interest” in land parcels to
SPV for USD600 million
(transfer of beneficial title)
Sukuk Ijarah
Owners
5. Proceeds
3. SPV issues Sukuk representing undivided
proportionate ownership in the underlying land
parcels which gives rise to rights to a share in the
rental payment in the Master Ijarah arrangement.
6. Periodic payment of rentals
8. GOM pays cash to SPV
4. Payment of proceeds
from sale of Sukuk
9. Payment of rental and at
maturity pay cash for sukuk
redemption

SUKUK ISTISNA’ – OVERVIEW
Page 34
 Structured to finance projects which will be completed in the future e.g. power plant, highways etc.
 Under “parallel Istisna’”, the Issuer, being awarded the project by awarding party, will enter into Istisna 1
with the Investors i.e. Investors to deliver the completed project to the Issuer and the Issuer is supposed
to pay the Istisna’ Price + Profit Margin to the Issuer, to be paid deferred at an agreed maturity date.
 The Issuer, being indebted to the Investors, will issue Sukuk Istisna’ to the Investors.
 The Issuer will create an SPV for project management purposes
 The Investor will then enter into Istisna’ 2 with SPV where the payment of the purchase price (equivalent
to construction cost) is paid by Investor based on the contractually agreed terms e.g. progressive
payment, one lump sum etc.
SPV
INVESTOR
Creates Special Purpose Vehicle
(SPV)
Istisna’ 1 (Construction Cost + Profit Margin)
ISSUER
Istisna’ 2 (Construction Cost)
Issue Sukuk Istisna’

SUKUK ISTISNA’ – SHARIAH ISSUES
 Under this structure, Sukuk Istisna’ represent the sale price under
Istisna’ 1 (securitization of the obligation to pay the Istisna’ sale
price).
 Thus, it can not be traded because it will tantamount to trading of
Istisna’ debt (bay’ al-dayn), which is not yet established until the
Istisna’ asset is completed and delivered to the satisfaction of the
buyer (Issuer).
Shariah Advisory Council of Securities Commission Malaysia’s
Decision (2003):
 Contractual guarantee of payment of Istisna’ Sale Price by the
Issuer is sufficient to establish the debt against the Issuer in favour
of the Investor (sukukholders); despite the nature of Istisna’
contract that originally depends on successful construction of the
Istisna’ asset in order to confirm the Istisna’ Price.
APPLICATIONS
 Prai Power Plant
(Malaysia – 2002)
 SKS/ Tanjung Bin
Power Plant (Malaysia –
2003)
 Sarawak International
Medical Centre
(Malaysia – 2004)

SUKUK MUSHARAKAH – OVERVIEW
 Both the Issuer and Investors (represented by SPV) contribute to the project being managed by either
the Issuer or third party (as the case maybe).
 The Issuer will issue Sukuk Musharakah evidencing the capital contribution of the investors and the
“indicative rate of profit.” Profit, if any, will be shared between the Issuer and Investors at an agreed
sharing ratio. Financial loss will be born by both proportionate to their respective investment.
Sukuk Musharakah – Islamic Religious Council of Singapore (MUIS)
SPV
INVESTOR
1. MUIS contributes
land and $35 mil
(waqf land) Shopping
Complex &
Offices
2 (b). SPV contributes
cash (Proceeds
received from
Investor) 2 (a) Receive invesment from Investor (Sukukholders)
3. MUIS appointed as Musharakah’s agent to develop the land.
MUIS receives fixed agency fee.
Estate Mgmt
Company5. Leased for 5 years with
guarantee. Rental will be
shared proportionately
6 Profits distributed to Sukukholders. MUIS irrevocably undertakes to buy at a pre-
agreed price the Musharakah shares of SPV/ Investor on semi-annual basis
(mutanaqisah).

SUKUK COMMODITY MURABAHAH (TAWARRUQ)
 Tawarruq (Monetisation) is applied by Cagamas (Malaysia’s national mortgage corporation) to purchase
receivables from Islamic assets (house financings, hire purchase and leasing) of financial institutions.
Trustee
Commodity
Broker A
1. Cagamas, as Agent (Wakil) of
Investors purchase commodity on
spot basis (Purchase Price)
INVESTOR
Commodity
Broker B
As Agent 2. Issue Sukuk to Investors to evidence ownership of commodity
3. Proceeds
4. Purchase
Price
5. Trustee (on behalf of Investors) sell
the commodity to Cagamas (Deferred
Sale Price = P+P) on deferred basis
6. Cagamas sells commodity to Broker B on spot basis (P)
7. Selling Price – used to fund Cagamas Islamic operations
8. Periodic
Profit
Payment
9. At maturity,
Cagamas pay
principal to
redeem
Cagamas Sukuk Commodity Murabahah (2007)

SPV
(Solidarity
Trust)
1. IDB sells the Assets (Ijarah assets US$264 mil i.e. 65.5%, Murabaha
assets US$123 mil & Istisna assets US$14 mil) to IDB for US$400 mil
Islamic Development Bank
US$400 Million Sukuk
Istithmar
2. ICD sells the
Assets to SPV for
US$ 400 mil
INVESTORSUKUK
3. SPV creates a trust in respect of the Assets and issues
5-Year Sukuk to raise US$400 mil
4. SPV appoints ICD as agent to
collect receivables from the Assets
5. SPV “delegates” the agency role
to IDB
6. IDB provides certain guarantee
in respect of the Assets and
Purchase Undertaking
HYBRID SUKUK

HYBRID SUKUK IDB – SHARIAH REQUIREMENTS
1. Shariah Board of IDB viewed that IDB can sell a
mixed portfolio of tangible assets (Ijarah properties)
and receivables (murabahah and istisna’) given that
the Ijarah properties are at least 51%.
2. IDB undertook that the Ijarah contract proportion in the
sukuk asset will not fall below 25%.
3. Based on the above, the sukuk can be freely tradable
in the secondary market.

HYBRID SUKUK (ISTISNA’ AND IJARAH)
 Structured to finance the construction of a cooling plan in Abu Dhabi, UAE.
 In order for the sukuk is tradable (during construction), Shariah Board required that at least 1/3 of the
sukuk was in the form of tangible assets. The completed plant during issuance of the sukuk represented
only 20% of the sukuk asset. To achieve this, additional tangible asset was introduced in the asset pool
i.e. Tabreed (SPV) bought palladium worth US$26 mil.
US$200 mil Istisna’ and Ijarah Tabreed Sukuk (UAE – 2006)
SPV (Tabreed
06 Financing
Corp)
INVESTOR
1. SPV Issue Sukuk
2. Istisna’ Agreement. Tabreed to deliver the
cooling plan & pay security amount
3. Upon delivery of plants, Tabreed leases the
plant (for 5 years)
4. Periodic rental payment
5. Pursuant to Purchase
Undertaking; upon maturity,
Tabreed purchase the plants
from SPV.

ISLAMIC EQUITY MARKET AND ITS CHARACTERISTICS
1. Business must be halal i.e. not involved in
prohibited activities like gambling, alcohol, riba.
Issue: What if the main business is halal, but
some part of it haram?
2. Must be structured according to Shariah,
whereby the features must follows the rules of
specific underlying contracts.
3. Profits should be shared on pro-rata basis.
Neither the principal nor profit can be
guaranteed.
4. The shares of a company are negotiable only if
the company owns some illiquid assets.

1/ SECURITIES - SHARIAH PRINCIPLES IN SHAREHOLDING
 The share certificate evidences a form of capital
contribution in a company.
 The investment in the shares can be in the form of
mudarabah or musharakah.
 The shares can be sold at any price as it
represents the assets owned by the company.
 The profit for investors can be in the form of
capital profits or dividends or both.
 Shariah stock selection must be done to ensure
that companies invested in are only conducting
Shariah compliant activities.

1/ SHARIAH STOCK SCREENING
 Financial services
based on riba (interest).
 Gambling
 Manufacturing or sale of
non-halal products.
 Conventional insurance
 Entertainment
 Manufacture or sale of
tobacco-based products
or related products.
 Stockbroking or share
trading in Shariah non-
approved securities.
 Other activities deemed
non-permissible.
 Public image is good
 Core activities have
importance and maslahah
 Non-compliant income to
turnover and PBT is below
benchmarks:
 5% - clearly prohibited
 10% - activities that
are wide spread and
difficult to avoid
 20% - mixed rental
from SNC.
 25% - generally
permissible, but
tainted by SNC
elements
Core Activity Add. Criteria
C
O
M
P
A
N
Y
O
K
DropDrop
YES
NO
NO
YES
 Cash over
Total Assets
–
conventional
deposit
<33%
 Debt over
Total Assets
–
conventional
borrowings
<33%
Financial Ratio
NO
Drop
NO

2/ SHARIAH PRINCIPLES IN UNIT TRUST
 Islamic unit trust – an open-end collective
investment that invests in pooled fund in
Shariah-approved equities, bonds and
money market including direct business
ventures, unquoted securities etc.
 Stock screening criteria, as well as
principles of investment in other instruments
must be Shariah compliant.
 Legal relationship between the Manager
and the Unitholders can be that of
 Wakalah (agency).
 Ju’alah (commission); or
 Mudarabah (joint-venture partnership)
 Legal relationship between the Unitholders
among themselves is that of Musharakah
(equity partnership).

01/2014 MRCC MEETING Page 46
HAJI MOHD NAZRI CHIK
Pengurus Besar/ Ketua Bahagian Syariah,
Bank Islam Malaysia Berhad
Email: mohdnazric@bankislam.com.my
Direct Line: +603-20888052
Mobile: +6019-3380047

Sijil Tinggi Muamalat 2 - Pengenalan kepada sistem kewangan islam : HAJI MOHD NAZRI CHIK (BIMB)

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Sijil Tinggi Muamalat 2 - Pengenalan kepada sistem kewangan islam : HAJI MOHD NAZRI CHIK (BIMB)

Similaire à Sijil Tinggi Muamalat 2 - Pengenalan kepada sistem kewangan islam : HAJI MOHD NAZRI CHIK (BIMB) (20)

Plus de Izzuddin Norrahman

Plus de Izzuddin Norrahman (20)

Dernier

Dernier (20)

Sijil Tinggi Muamalat 2 - Pengenalan kepada sistem kewangan islam : HAJI MOHD NAZRI CHIK (BIMB)