This document discusses securitization from an Islamic perspective. It defines securitization as issuing certificates of ownership against an investment pool or business. It describes how Musharakah, Murabahah, and Ijarah can be securitized. Musharakah certificates represent direct ownership in project assets and can be traded. Murabahah cannot be securitized for trading but portfolios can include it. Ijarah certificates represent ownership in leased assets and allow trading of rental profits and liability for losses. Government assets like ports and buildings could be securitized through sale-leaseback or diminishing Musharakah structures.
An authentic and comprehensive presentation on Musharaka - the Islamic Finance instrument. The presentation covers the classic fiqh aspects of Shirqat and also Musharaka as we know it in Islamic banking parlance today.
Islamic Banking (IB)Definition:Islamic banking can be defined as: a form of modern banking based on Islamic legal concepts using risk- sharing as its main method excluding financing based on fixed pre- determined return.
An authentic and comprehensive presentation on Musharaka - the Islamic Finance instrument. The presentation covers the classic fiqh aspects of Shirqat and also Musharaka as we know it in Islamic banking parlance today.
Islamic Banking (IB)Definition:Islamic banking can be defined as: a form of modern banking based on Islamic legal concepts using risk- sharing as its main method excluding financing based on fixed pre- determined return.
Mudarabah is a special kind of partnership where one partner providers the capital (rabb-ul-maal) to the other (mudarib) for investment in a commercial enterprise.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
5. 5
Securitization of Musharakah
Musharakah certificate
Every subscriber can be given a Musharakah
certificate, which represents his proportionate
ownership in the assets of the Musharakah.
After the project is started, these Musharakah
certificates can be treated as negotiable
instruments.
Can be bought and sold in the secondary
market.
6. 6
Securitization of Musharakah
Some Essential Conditions
All the assets of the Musharakah should
not be in liquid form.
Portfolio of Musharakah should consist
of non-liquid assets valuing more than
50% of its total worth.
7. 7
Securitization of Musharakah
However, if Hanafi view is adopted, trading
will be allowed even if the non-liquid assets
are less than 50% but the size of the non-
liquid assets should not be negligible.
Whenever there is a combination of liquid
and non-liquid assets, it can be sold and
purchased for an amount greater than the
amount of liquid assets in combination.
8. 8
Difference Between Musharakah Certificates
and a Conventional Bond
Musharakah Certificates
Represents the direct
pro rata ownership of
the holder in the assets
of the project.
If all the assets of the
joint project are in liquid
form, the certificate will
represent a certain
proportion of money
owned by the project.
Conventional Bond
Has nothing to do with the
actual business
undertaken with the
borrowed money.
The bond stands for a loan
repayable to the holder in
any case, and mostly with
interest.
9. 9
Securitization of Murabahah
Murabahah is a transaction, which cannot be
securitized for creating a negotiable
instrument to be sold and purchased in
secondary market.
However, if the Murabahah paper is
transferred, it must be at par value; not more,
not less.
A mixed portfolio consisting of a number of
transactions including Murabahah, may issue
negotiable certificates subject to certain
conditions.
10. 10
Securitization of Ijarah
It is possible to create a secondary market
instrument for the financiers on the basis
of Ijarah.
The lessor (owner) can sell the leased
asset wholly or partly either to one party or
to a number of individuals to recover his
cost of purchase of the asset with a profit
thereon.
11. 11
Securitization of Ijarah
This purchase of a proportion of the
asset by each individual may be
evidenced by a certificate, which may be
called 'Ijarah certificate'.
12. 12
Securitization of Ijarah
Ijarah certificate
Represents the holder's proportionate
ownership in the leased asset.
The holder will assume the rights and
obligations of the owner/lessor to that
extent.
The holder will have the right to enjoy a
part of the rent according to his
proportion of ownership in the asset.
13. 13
Securitization of Ijarah
In the case of total destruction of the
asset, he will suffer the loss to the
extent of his ownership.
These certificates can be negotiated
and traded freely in the market and can
serve as an instrument easily
convertible into cash.
14. 14
Securitization of Ijarah
Essential Condition
“It is essential that the Ijarah certificates
are designed to represent real ownership
of the leased assets, and not only a right
to receive rent.”
15. 15
SECURITIZATION OF GOVERNMENT ASSETS
Ports
Airports
Railways
Roads and Bridges
Hospitals
Schools
Buildings
Dams
Land – mainly owned by the Provincial Government
State owned Enterprises
16. 16
MODE
Sale and Lease back
Sale and Lease-to-Purchase (Diminishing
Musharakah)
VEHICLE
Central Bank
Primary Dealers
Secondary market
17. 17
INSTRUMENTS
Treasury Bills
Government Sukuk
USES
Liquidity Management of Islamic and non-
Islamic Banks.
Money Market Operation
18. 18
Federal
Provincial
District and Municipal
Semi Government
Zakat Fund
Non-Tax Resource general for all levels of
Government