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Fundamentals of Islamic Money and Capital Markets

توضیحات

The first comprehensive guide to Islamic financial markets

Based on the course taught at the International Islamic University Malaysia, this is the first book on Islamic finance to focus exclusively on money and capital markets. Covering basic concepts as well as current practices in Islamic financial markets, the book features case studies from real markets. It outlines the theory of money in terms of value, supply, and demand, while explaining the Islamic capital markets in terms of classifications, types of operations, valuations of securities, Islamic unit trust, ETFs, Islamic stock broking, and much more.

  • Written by experts from the International Islamic University Malaysia, the leading organisation in research in Islamic finance
  • The first guide to Islamic finance focused solely on money and capital markets

An excellent introduction to money market principles for students in Islamic banking and finance, as well as researchers and current practitioners, Fundamentals of Islamic Money and Capital Markets is a vital resource on the subject.


Preface
Acknowledgments

Chapter 1: An Introduction to Conventional and Islamic Financial Systems
Learning Outcomes
Introduction
The Roles and Functions of Financial Markets
Structures of Financial Markets
Based on the Instrument
Based on the Issuance of Securities
Based on the Methods used in Secondary Markets
Based on the Maturity
Classification of Financial Markets
The Money Market
Money Market Participants
Money Market Instruments
The Capital Market
Types of Financial Intermediaries
Depository Institutions
Contractual Institutions
Investments and Finance Institutions
A Brief Overview of the Islamic Financial System
Evolution of Islamic Finance
Chapter Summary
Chapter Questions
Notes
References

Chapter 2: Development of Islamic Capital and Money Markets in Malaysia
Learning Outcomes
Introduction
Development of Islamic Financial Institutions in Malaysia
1960-1990: Establishment of Islamic financial institutions
Tabung Haji
Bank Islam Malaysia Berhad
Syarikat Takaful Malaysia Berhad
1990-2000: Conventional banks were allowed to offer Islamic financial products and services under the Islamic banking scheme
2000-2010: Islamic Subsidiaries and the International Integration of Islamic banking system
Islamic Capital Markets in Malaysia
Sukuk
Islamic Collective Investments
Islamic Stock Broking
Malaysia International Islamic Financial Centre (MIFC)
Chapter Summary
Chapter Questions
Notes
References

Chapter 3: Regulators and Transactions Platform for Capital and Money Markets
Learning Outcomes
Introduction
Bank Negara Malaysia (BNM)
Role and Functions
BNM Administered Legislation
Role of BNM on ICM Development
Securities Commission (SC)
Role of SC on ICM Development
Bursa Malaysia (BM)
Role of BM on ICM Development
Shariah Compliant Stocks and ETF
Islamic Equity Indices
Islamic REITs and Sukuk Market
Chapter Summary
Chapter Questions
Notes
References

Chapter 4: Islamic Money Market
Learning Outcomes
Introduction
Money Market Participants
Functions of Islamic Money Market
Differences between Islamic and Conventional Money Markets
Components of the Malaysian Islamic Money Market
Islamic Interbank Market
Mudarabah Interbank Investment
Profit Calculation for Mudarabah Interbank Investment
Example: Mudarabah Interbank Investment (MII)
Commodity Murabahah
Example: Commodity Murabahah Interbank Investment
Wakalah Investment
Trading of Islamic Money Market Instruments
Government Investment Issue (GII)
Example: Calculation of GII price
Malaysian Islamic Treasury Bills (MITB)
Example: Calculation of Proceeds on MITB
Bank Negara Monetary Notes (BNMN)
Sukuk Bank Negara Malaysia Ijarah (SBNMI)
Islamic Negotiable Instruments (INI)
Negotiable Islamic Debt Certificate (NIDC)
Example: Calculation of price of NIDC of less than 1 year:
Example: Calculation of price NIDC with maturity of more than 1 year
Islamic Negotiable Instruments of Deposit (INID)
Example: Calculation of proceeds for an INID
Islamic Accepted Bill (IAB)
Import and local purchases
Export/ Local Trade
Example: Price calculation of IAB under Bai al-Dayn
Sell and Buy Back Agreement (SBBA)
Example: Sell and Buy Back Agreement
Cagamas Sukuk
Sanadat Mudarabah Cagamas (SMC)
Example: Sanadat Mudarabah Cagamas (SMC) calculation
Sanadat Cagamas
Islamic Corporate Sukuks
Chapter Summary
Chapter Questions
Notes
References

Chapter 5: An Overview of Sukuk
Learning Outcomes
Introduction
Comparing Sukuk, Bonds, and Shares
Sukuk Types
Sukuk Structures
Sukuk Al-Ijarah
Mini Case Study
The General structure of Sukuk Al-Ijarah
Documents Required for Sukuk al-ijarah issuance
Key Features of Sukuk al-ijarah structure
Sukuk Al-Musharakah
Mini Case Study
The General structure of Sukuk Al-Musharakah
Documents Required for Sukuk al-musharakah issuance16
Key Features of Sukuk al-Musharakah structure
Sukuk Al-Mudarabah
Mini Case Study
The General structure of Sukuk al-Mudharabah
Documents Required for Sukuk al-mudarabah structure20
Key Features of Sukuk al-mudarabah
Sukuk Al-Salam
Mini Case Study:
The General structure of Al-Salam Sukuk
Documents Required for Sukuk al-Salam21
Key Features of Sukuk al-Salam
Sukuk Al-Istisna
Mini Case Study
The General structure of Al-Istisna Sukuk
Documents Required for Sukuk al-Istisna’ structure
Key Features of Sukuk al-Istisna’ structure
Sukuk Al-Murabahah
Mini Case Study
The General structure of Al-Murabaha Sukuk
Documents Required for Sukuk al-Murabaha structure
Key Features of Sukuk al-Murabaha structure
Sukuk Al-Istithmar
Mini Case Study
The General structure of Al-Istithmar Sukuk
Documents Required for Sukuk al-Istithmar structure
Key Features of Sukuk al-Istithmar structure
Sukuk Al-Wakala
Mini Case Study
The General structure of Sukuk Al-Wakala
Documents Required for Sukuk al-Wakal structure
Key Features of Sukuk al-Wakala structure:
Chapter Summary
Chapter Questions
Notes
References

Chapter 6: Shariah Compliant Equity
Learning Outcomes
Introduction
The Structure of Equity Markets
Shariah Compliant Equity Securities
Differences between Shariah and Non-Shariah Compliant Equity Markets
Shariah Compliant Stocks Screening
Malaysia Securities Commission
Core Activities
Mixed Activities
Benchmarks of Tolerance
S&P Shariah Indices
Sector-Based Screens
Accounting-Based Screens
Leverage Compliance
Cash Compliance
Revenue Share from Non-Compliant Activities
Dow Jones Islamic Index
DJIM: A World of Possibilities
Industry Screens
Financial Ratio Screens
Pakistan Meezan Islamic Fund
Core Business Activities of the Investee Company
Mixed Business Activities of the Investee Company
Financial Ratio Screening
Global GCC Islamic Fund Screening
Business Activity Screening
Financial Ratio
Dividend Purification
Jakarta Islamic Index
Business Activity Screening
Business Activity Screening
Chapter Summary
Chapter Questions
Note
References

Chapter 7: Islamic Mutual Funds
Learning Outcomes
Introduction
Closed and Open-Ended Funds
Conventional mutual funds
Active and passive management
Advantages of Mutual Funds
Disadvantage of Mutual Funds
Fees and Expenses
Islamic Mutual funds
Basic concept of Islamic mutual funds
Shariah stock screening
Purification of Income
Types of Islamic mutual funds
The role of shariah advisory board in the Islamic mutual funds
Calculating NAV in the Islamic mutual funds
Organization of Islamic mutual funds
IVg The process of Investing in Islamic Mutual funds
Example: Amana Income Funds2
Example: Amana Growth Funds3
Islamic ethical investment and ethical Investment
Chapter Questions
Notes
References

Chapter 8: Islamic Real Estate Investment Trusts (I-REIT)
Learning Outcomes
Introduction
Islamic Real Estate Investment Trusts (I-REITs)
Shariah - Permissible Investments for I-REITs
First Case: Mixed Activities
Second Case: Rental of non permissible activites
I-REITs Structure
Case Study: Al-‘Aqar KPJ REIT1
Case Study: Al-Hadharah Bousted REIT2
Difference between Conventional and Islamic REITs
Chapter Summary
Chapter Questions
Notes
References

Chapter 9: Islamic Exchange Traded Funds
Learning Outcomes
Introduction
Open and Closed-End Funds, and Unit Trust Funds
Open end Funds
Closed end Funds
Unit Trust
Exchange Traded Funds (ETFs)
Islamic Exchange Trade Funds (I-ETFs)
Security Borrowing and Lending in Malaysia
Islamic ETFs in Other Countries
Challenges in promoting I-ETFs
Chapter Summary
Chapter Questions
Notes
References

Chapter 10: Islamic Derivatives Market
Learning Outcomes
Introduction
Derivative Securities in the Conventional Market
Risk Profile
Main players in the derivative markets
Hedging with forward contract
Hedging with future contracts
Hedging with Swap Contracts
Currency Swap
Commodity Swap
Interest rate swap
Hedging with Option Contract
Derivative Securities in Islamic perspective
Islamic forward and future contract
Islamic option contract
Islamic Cross Currency Swap
Islamic profit rate swap
Islamic Structured Product
Chapter Summary
Chapter Questions
Notes
References

Bibliography
About the Authors
Index