Bai ( buying & selling ) by zubair mughal
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Transcript

  • 1.  
  • 2.
    • Islamic Banking
    • Presented by :
    • Zubair Mughal
    • CEO – AlHuda: Centre of Islamic Banking & Economics
  • 3. Musharakah
    • Characteristics
      • All parties share in the capital
      • All parties share profits as well as losses
      • Profits are distributed as per agreed ratio
      • Loss is borne by the parties as per capital ratio
      • Every partner is agent of other
  • 4. MUSHARAKAH PARTNER A PARTNER B VENTURE Rs.1000 Rs.1000 PROFIT Rs. 100 LOSS Rs.100 Rs. 60 Rs. 40 Rs. 50 Rs. 50 May be in any agreed ratio Must be according to capital ratio
  • 5. Mudarabah
    • One partner (Rab al Mal) contributes capital and the other (Mudarib) contributes his skills or services to the venture
    • Venture may for a fixed period or purpose
    • Both share profit in pre-agreed ratio
    • Loss is borne by Rab al Mal only, Mudarib loses his services
  • 6. MUDARABAH RABBUL MAL MUDARIB VENTURE SERVICES CAPITAL PROFIT LOSS 40 % 60 % LOSS OF SERVICES ALL MONETORY LOSS
  • 7. Basic Rules of Bai
    • Unconditional basis
    • Product have value/Price.
    • Bai on Such product which is permissible in Islam.
  • 8. Basic Rules of Bai
    • Existence of Product/Commodity
    • Ownership of Product/Commodity
    • Possession of Product/Commodity
  • 9. Basic Rules of Bai
    • Product Must be Identify, clear with all demanding Qualities.
    • Not based on any incident, struggle etc
    • Price must be clearly identified.
  • 10. Bai (Buying & Selling)
    • Basic Kinds of Bai
  • 11. Kinds of Bai
    • Bai Musawamah
    • Bai Murabaha
    • Bai Surf
    • Bai Salam
    • Bai Istisna’
    • Bai Urboon
  • 12. Basic Kinds of Bai
    • Bai Eenna
    • Bai Touliya
    • Bai Wadhia
  • 13. Bai
    • There are three basic type of Bai’s which are using in Islamic Banking as the mode of financing in Pakistan
    • Murabahah
    • Salam
    • Istisna’
  • 14. Murabahah
    • Basically, it’s not a mode of financing but a source to avoid interest Dealing
    • It’s not a type of loan, but a deal (Bai)
    • Murabahah can be used as source of financing when client needs funds to purchase any product/Machinery etc.
  • 15. Murabahah
    • Sharing of Risk of loss differentiate Murabahah from the interest category
    • Product Must be bought from third party for avoid buy back transaction
    • Roll over is not Valid in Murabahah
    • If actual cost can not be identified then Murabahah deal not possible.
  • 16. Bai
    • Important Note
    • Following 3 Basic Rules of Bai are exceptional for Salam & Istisna’
    • Existence of Product/Commodity
    • Ownership of Product/Commodity
    • Possession of Product/Commodity
  • 17. Salam
    • Pay 100% amount in Advance.
    • Product must be quantified, identified and Measured with quality.
    • Date of delivery, Time, Place must be mentioned clearly in advance.
    • Salam is not valid for a specific farm/land/garden.
  • 18. Istisna’
    • Not necessary to pay the 100% amount in advance Like Bai salam.
    • Price must be decided on beginning of the contract.
    • Qualities, features of that product must be clearly identified.
  • 19. Bai
    • Differences Between Istisna and Salam
  • 20. Differences Between Istisna and Salam
    • Istisna deal with manufacturing items, but Salam could or could not be manufacutred, but salam ideal of agriculture sector.
    • In salam advance payment is necessary, but in Istisna’ its not.
  • 21. Differences Between Istisna and Salam
    • Date, time of delivery the necessary part of Bai Salam, But in Istisna, it is not the part of the deal.
    • In Bai salam, it can be cancelled one sided, but in Istisna, it could be cancelled, if production is not started yet.
  • 22. Type of Bai according to Quality
    • Bai Salah
    • Bai Fasid
    • Bai Batil
    • Bai Maqoof
  • 23. Type of Bai according to Quality
    • Bai Majool
    • Bai Muqayaddah
    • Bai Mu’ajal
  • 24.
    • Thank you