1 / 1

Islamic securities, and IDRs are governed by investor protection as well as

Islamic securities, and IDRs are governed by investor protection as well as shari[ah compliance. If the investor demand certain degree of corporate governance and certain degree of shari[ah compliance in the underlying

walda
Download Presentation

Islamic securities, and IDRs are governed by investor protection as well as

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Islamic securities, and IDRs are governed by investor protection as well as shari[ah compliance. If the investor demand certain degree of corporate governance and certain degree of shari[ah compliance in the underlying asset of the IDR, then those that do not meet the required levels will not benefit. This will force the individual firms to improve corporate governance and the regulators to amend the regulations towards more converging views. In the long-run such competition will not necessarily produce identical rules, practices and governance standards but more of specialization with each jurisdiction specializing in certain kinds of products and the rules governing those products will be accepted. What is important in starting this phenomenon and continuing with it is the selection of shari[ah compatible instruments for IDR issue. Authenticating and shari[ah approving institutions like IIFM can play a role. Similarly, the central banks of individual Muslim countries can promote such convergence. An often discussed and lamented aspect in Islamic finance is non- standardized products and procedures as well as varying application of shari[ah opinions. This is often cited as obstacle to growth and integration of markets. This small step of IDR can promote the much needed convergence. 60

More Related