The Islamic Capital Market

As a result of all of these, wrong names (musharakah or mudarabah) are attached to other bond products, or Shariah's trade name is violated in violation of Shariah. For this reason, the active role of the Islamic Board of Education, Islamic Law Scholars, as well as economists and Islamic finance experts is required for the current product development process and its ongoing monitoring. 3 Regulatory Issues Islamic banks require individual regulations and many countries recognize that many R & D activities are moving in this direction, but this understanding of capital market regulation is not universal .

The Islamic financial system has four basic mechanisms: Islamic financial institution, Takaful, Islamic capital market, Islamic currency market. The structure of the financial system may include professional and non-professional financial institutions in an organized unstructured financial market, as well as financial products and services that facilitate transfer of funds. It also includes procedures and practices used in Islamic financial markets. The Malaysian National Bank Advisory Committee and the Securities Committee Islamic Law Advisory Committee review the operation and mechanisms of the financial system to ensure compliance with Islamic regulations.

At the heart of the Islamic capital market is trading of Shariah-compliant financial assets. This system responds to traditional markets and encourages investors to look for Sharia-compliant investment opportunities; the traditional capital markets allow investors to invest only, the borrowers borrow money You can look for. Proof of the certificate representing investment ownership managed by Mudaraba. As a fundamental form of Islamic economic profit sharing, Mudaraba is the agreement between capital providers and entrepreneurs, or basically the basis of "hangman". With the establishment of a company aimed at creating "halal" profits, the two share profits according to the agreed ratio. The condition is that monetary investors will bear these losses if the company suffers a loss and the enforcer does not receive the knowledge and time compensation he entered.