Perpetual Sukuk : a preliminary Shariah assessment
Joint Authors
Ellias, Muhd Ramadhan Fitri
Harun, Muhammad Nasir
Kadir, Ahmad Firdaws
Salim, Nur Hidayah
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 8, Issue 1 (30 Jun. 2016), pp.125-161, 37 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2016-06-30
Country of Publication
Malaysia
No. of Pages
37
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Islamic jurisprudence
- Islamic law
- Islam
- Financial transactions
- Contracts
- Negotiation
- Financing
- Profits
- Financial markets
- Refinancing
- Speculation
- Partnerships
- Agency(Law)
- Payments
- Certificates of participation(Securities)
- Islamic Banks
- Promise(Law)
- Deeds
- Bank liquidity
- Basel Accords
Abstract EN
Perpetual ṣukūk are among the latest innovative instrument in the Islamic capital market.
The introduction of this instrument has been driven by its commercial advantages as well as new regulatory requirements particularly in the financial sector.
Perpetual ṣukūk have distinctive features compared to common ṣukūk for the instrument carries no maturity date and is typically treated as equity (from an accounting standpoint) rather than debt.
While this innovation is commendable, it deserves Shariah consideration of some of its structural and operational aspects.
This paper attempts to analyse selected issues and highlight justifications provided by respective Shariah advisers in approving perpetual ṣukūk.
The paper begins with providing an overview on perpetual ṣukūk, its common features and basic requirements and its specific characteristics when issued as Additional Tier 1 (AT1) capital instruments by financial institutions to meet capital requirements under Basel III.
Subsequently, the paper illustrates selected structures of recent perpetual ṣukūk issued in Malaysia and other countries.
Finally, it highlights some potential Sharīʿah issues that might arise and deliberates upon them from the Shariah perspective.
The discussion and analysis of most of the Shariah issues in this paper are, however, neither conclusive nor exhaustive.
American Psychological Association (APA)
Ellias, Muhd Ramadhan Fitri& Harun, Muhammad Nasir& Kadir, Ahmad Firdaws& Salim, Nur Hidayah. 2016. Perpetual Sukuk : a preliminary Shariah assessment. ISRA International Journal of Islamic Finance،Vol. 8, no. 1, pp.125-161.
https://search.emarefa.net/detail/BIM-717891
Modern Language Association (MLA)
Ellias, Muhd Ramadhan Fitri…[et al.]. Perpetual Sukuk : a preliminary Shariah assessment. ISRA International Journal of Islamic Finance Vol. 8, no. 1 (Jun. 2016), pp.125-161.
https://search.emarefa.net/detail/BIM-717891
American Medical Association (AMA)
Ellias, Muhd Ramadhan Fitri& Harun, Muhammad Nasir& Kadir, Ahmad Firdaws& Salim, Nur Hidayah. Perpetual Sukuk : a preliminary Shariah assessment. ISRA International Journal of Islamic Finance. 2016. Vol. 8, no. 1, pp.125-161.
https://search.emarefa.net/detail/BIM-717891
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 161
Record ID
BIM-717891